i AN EVALUATION OF BRANDED RETAILING ON CONSUMER BEHAVIOUR WITHIN A PUBLIC RELATIONS CONTEXT: A STUDY OF THE INFLUENCE OF SOUTH AFRICAN NAME BRANDS ON CONSUMER BEHAVIOUR Gedala Mulliah Naidoo Submitted in accordance with the requirements for the degree of Doctor of Philosophy in Communication Science University of Zululand 2011 Supervisor: Professor H. Rugbeer Co-Supervisor: Dr Y. Rugbeer Student Number: 20034985 i ABSTRACT AN EVALUATION OF BRANDED RETAILING ON CONSUMER BEHAVIOUR WITHIN A PUBLIC RELATIONS CONTEXT: A STUDY OF THE INFLUENCE OF SOUTH AFRICAN NAME BRANDS ON CONSUMER BEHAVIOUR South African branded retailers are an important part of the South African economy. This study focuses on how branded retailers conduct their businesses to attract and maintain consumer loyalty to their brand. This study explores how new technologies are being adapted to advance and retain their market segment. Social media has created a new market area that needs to be segmented and captured. These new forms of engagement can either assist the branded retailer to advance its strength in the market place or be used by consumers to boycott a brand. Consumer behaviour also plays a significant part in the branded retailer?s success. Consumers expect an avant-garde service from branded retailers. Media has the power to influence the consumer to purchase out of want and not out of need. The powerful and attractive advertisements can become addictive and promote impulsive behaviour. However, consumers have the power to either build or destroy a brand. Branded retailers need be seen as responsible to their internal and external operations. The findings of this study will help provide the branded retailer with deeper insights and positively influence consumers and establish a lasting relationship. ii ETHICAL STATEMENT BY RESEARCHER With the signature below I, Gedala Mulliah Naidoo, hereby declare that the work that I present in this thesis is based on my own research, and that I have not submitted this thesis to any other institution of higher education to obtain an academic qualification. _____________________ _____________________ GM Naidoo Date 31 January 2011 iii ACKNOWLEDGMENTS The author wishes to thank the following: o God (Jesus Christ) for empowering me with wisdom and strength for completing this task. o Nisha Naidoo: My wife and friend for her untiring support and motivation. Her positive attitude and strength have enabled me to achieve this success. I am grateful for her patience in affording me the time to complete this study. o My children, Kevisha and Mackayla, for their patience and support. o To my late parents, Mr Ramaswami and Mrs Alimelamah Naidoo. o To my late grandfather Gedala Mulliah Naidoo who came from Kodisa, Andhra Pradesh, India in 1908 (103 years ago) as an indentured labourer. o Prof. Vijay Rugbeer & Dr Yasmin Rugbeer, my promoters, for their guidance, patience and encouragement. Without their confidence in my ability, this study would not have been possible. iv WRITING CONVENTIONS The following conventions are used in this study: o The abbreviated Harvard style of referencing in this study, for example Drummond & Ensor (2005:6), meaning Drummond & Ensor 2005, page 6. o The words (consumer & customer), (branded retailer & brand retailer) and (mobile phone & cell phone) are used interchangeably in this research. o Illustrative tables and figures are all given as Figures 1 ? 59 and Tables 1 ? 18 in their chronological sequence of appearance. o A conscious effort has been made to limit the use of footnotes as far as possible in order to facilitate the uninterrupted reading of the dissertation. o For commonly used terms full terms are used in headings. Acronyms are used in paragraphs. o Relevant material relating to Branded Retailing was tracked down from websites. Such website addresses are included in the dissertation, both for verification purposes, and for acknowledgement of the source of information. An example of a typical website address is: http://www.powerhomebiz.com/102005/brand2.htm. The World Wide Web (WWW) is transient and ever changing, therefore one should expect that websites from which information is gathered will be offline or may alter the contents of the website a period of time. o In instances where the electronic document has been downloaded from a website, the author is given, followed by the year as in: Yudkin (2005). o The bibliography has been organised alphabetically. v LIST OF FIGURES Number Page FIGURE 1 : CUSTOMER TYPES, ROLES AND BEHAVIOURS ................................................... 54 FIGURE 2: OVERVIEW OF CONSUMER BEHAVIOUR ............................................................ 57 FIGURE 3: MASLOW?S HIERARCHY OF HUMAN NEEDS ....................................................... 59 FIGURE 4: INFLUENCES AND CONSUMER BEHAVIOUR ......................................................... 62 FIGURE 5: BRAND EQUITY ............................................................................................ 77 FIGURE 6: WHAT IS A BRAND? ...................................................................................... 82 FIGURE 7: RECOGNIZED TRADEMARKS AND SYMBOLS IN THE MARKET .................................. 90 FIGURE 8: THE PROMOTIONAL MIX ............................................................................... 113 FIGURE 9: HOME CHOICE HOME PAGE .......................................................................... 121 FIGURE 10: VIRAL VIDEO ........................................................................................... 123 FIGURE 11: EFFECTIVENESS OF THE FORMS OF MASS COMMUNICATION .............................. 126 FIGURE 12: US ONLINE ADVERTING SPENDING, 2001-2011 (BILLIONS) ............................. 131 FIGURE 13: WORLD ORGANISATION AND PARTNERS ........................................................ 133 FIGURE 14: 1GOAL SQUAD ........................................................................................ 134 FIGURE 15: VENN DIAGRAM ....................................................................................... 142 FIGURE 16: SHOPRITE HOLDING .................................................................................. 152 FIGURE 17: FRAMEWORK ABSA CSI ........................................................................... 159 FIGURE 18: KFC ADD HOPE CAMPAIGN ....................................................................... 183 FIGURE 19: PROUDLY SOUTH AFRICA .......................................................................... 193 FIGURE 20: MEMBERSHIP CRITERIA ............................................................................. 194 FIGURE 21: TOP 10 SOCIAL-NETWORKING WEBSITES & FORUMS BY US MARKET SHARE OF VISITS (%) MAY 2010. ............................................................................................... 212 FIGURE 22:ECONOMIC DEVELOPMENT .......................................................................... 213 FIGURE 23: COMMUNICATION AS A TWO-WAY PROCESS .................................................. 217 FIGURE 24: SHANNON'S (1948) MODEL OF THE COMMUNICATION PROCESS ......................... 218 FIGURE 25: FACE TO FACE COMMUNICATION ................................................................. 222 FIGURE 26: FACE TO SCREEN AND SCREEN TO FACE COMMUNICATION ............................... 223 FIGURE 27: FACE TO SCREEN AND SCREEN TO MANY ..................................................... 224 FIGURE 28: FACE TO SCREEN & SCREEN TO MANY & MANY TO VIRTUAL NETWORK OF COMMUNITIES .......................................................................................................... 225 FIGURE 29: SELECTING OF VARIABLE VIEW .................................................................... 241 FIGURE 30: ASSIGNING LABELS FROM QUESTIONNAIRE INTO SPSS ................................... 242 FIGURE 31: ASSIGNING OF VARIABLES INTO SPSS ......................................................... 243 FIGURE 32: ASSIGNING OF MEASURE IN SPSS ............................................................... 243 FIGURE 33:THE VARIABLE VIEW OF CODED INFORMATION ................................................. 244 FIGURE 34: THE DATA VIEW IN SPSS ........................................................................... 244 FIGURE 35: THE NUMERIC LABEL AND VALUE LABEL IN SPSS ........................................... 245 FIGURE 36: VERIFYING THE CODING PROCESS ................................................................ 245 FIGURE 37: THE PROCEDURE FOR CORRELATING DATA IN SPSS ....................................... 246 FIGURE 38: SELECTING OF VARIABLES IN THE ................................................................ 246 vi FIGURE 39: CORRELATION TABLE IN SPSS ................................................................... 247 FIGURE 40: THE PROCEDURE FOR CREATING TABLES IN SPSS ......................................... 247 FIGURE 41: SELECTION OF VARIABLE IN SPSS .............................................................. 248 FIGURE 42: SELECTION OF SUMMARY STATISTICS IN SPSS ........................................... 248 FIGURE 43: SELECTION OF CATEGORIES AND TOTALS IN SPSS ........................................ 249 FIGURE 44: SELECTION OF CATEGORIES AND TOTALS IN SPSS ....................................... 249 FIGURE 45: SAMPLE BAR GRAPH IN SPSS .................................................................... 250 FIGURE 46: SAMPLE BAR GRAPH IN SPSS .................................................................... 250 FIGURE 47: SAMPLE BAR GRAPH IN SPSS .................................................................... 251 FIGURE 48: AGE OF RESPONDENTS .............................................................................. 253 FIGURE 49: EMPLOYMENT STATUS .............................................................................. 254 FIGURE 50: EMPLOYMENT DURATION ........................................................................... 255 FIGURE 51: METHODS OF PURCHASING ......................................................................... 256 FIGURE 52: PURCHASING BRANDED PRODUCTS .............................................................. 257 FIGURE 53: SHOPPING AT SPECIFIC BRANDED RETAILERS ................................................ 259 FIGURE 54: SERVICE DELIVERY ................................................................................... 261 FIGURE 55: CUSTOMER SERVICE ................................................................................. 270 FIGURE 56: CUSTOMER QUERIES ................................................................................ 271 FIGURE 57: PROUDLY SOUTH AFRICA BRANDS .............................................................. 272 FIGURE 58: WORDING IN ADVERTISING ......................................................................... 273 FIGURE 59: MEDIA?S INFLUENCE CHILDREN?S PARENTAL BEHAVIOUR ................................. 274 vii LIST OF TABLES Number Page TABLE 1: MASLOW?S HIERARCHY AND MARKETING STRATEGIES ......................................... 60 TABLE 2: THE SIX PRINCIPLES OF SUCCESSFUL CAUSE-RELATED MARKETING ....................... 111 TABLE 3: EFFECTS OF GRAPHICS ON CONSUMER PERCEPTIONS ......................................... 137 TABLE 4: PEPKOR GROUP STRUCTURE ......................................................................... 167 TABLE 5: ONLINE SHOPS ........................................................................................... 209 TABLE 6: SIMPLE RANDOM SAMPLE SIZE AT 95% CONFIDENCE LEVEL. ................................ 233 TABLE 7: SAMPLE TABLE OF SPSS ............................................................................. 249 TABLE 8:THE SELECTION OF THE TYPE OF GRAPH IN SPSS .............................................. 250 TABLE 9: GENDER .................................................................................................... 252 TABLE 10: BRANDED PRODUCTS ................................................................................. 258 TABLE 11: FREQUENTLY VISITED BRANDED STORES ........................................................ 260 TABLE 12: FORMS OF COMMUNICATION ........................................................................ 262 TABLE 13: BRANDED RETAILER?S ADVERTISEMENTS ...................................................... 263 TABLE 14: TYPE OF BRANDED RETAILERS SUPPORTED ................................................... 264 TABLE 15: COMMUNITY DEVELOPMENT ........................................................................ 265 TABLE 16: CUSTOMER SATISFACTION .......................................................................... 266 TABLE 17: ADVERTISING USAGE ................................................................................. 267 TABLE 18: PRODUCT INFLUENCE ................................................................................. 268 TABLE 19: BRANDED PRODUCTS ................................................................................. 269 8 LIST OF ACRONYMS AA: Automobile Association AASA: Automobile Association of South Africa AI: Artificial Intelligence AIDS: Acquired Immune Deficiency Syndrome Absa: Amalgamated Banks of South Africa AMA: American Marketing Association AsgiSA: Accelerated and Shared Growth Initiative for South Africa B2B: Business to Business B2C: Business to Customer C2B: Customer to Business C2C: Customer to Customer CDE: Community Development Exchange CGCSA: Consumer Goods Council of South Africa CPRP: Charted Public Relations Practitioner CRM: Customer Relationship Management CRM: Customer Relationship Management COE: Centre of Excellence CRM: Cause-related Marketing CSD: Customer Service Department CSI: Corporate Social Investment CSR: Corporate Social Responsibility ECI: Employee Community Involvement ECD: Early Childhood Development 9 ETF: Exchange Traded Fund FIFA: The International Federation of Association Football1 FMCG: Fast Moving Consumer Goods FNB: First National Bank FWAPR: First World Assembly of Public Relations GPS: Global Positioning System HIV: Human Immunodeficiency Virus IAA: International Authentication Association IBM: International Business Machines ICC: International Cricket Council ICT: Information and Communication Technologies ICASA: Independent Communications Authority of South Africa IMC: Integrated Marketing Communications IP: Intellectual Property IP: Internet Protocol JIPSA: Joint Initiative for Priority Skills Acquisition KFC: Kentucky Fried Chicken LSM: Living Standards Measure MD: Managing Director MMS: Multimedia Messaging Service MTN: Mobile Telecommunication Networks NCPPDSA: National Council for Persons with Physical Disabilities NQF: National Qualifications Framework 1 (French: F?d?ration Internationale de Football Association) 10 OVC: Orphans and Vulnerable Children PLB: Private Label Brands PR: Public Relations PRISA: Public Relations Institute of Southern Africa PBO: Public Benefit Organisations PRO: Public Relations Officer PRP: Public Relations Practitioner ROI: Return on Investment SA: South Africa SAA: South African Airlines SABC: South African Broadcasting Corporation SAB: South African Breweries SABS: South African Bureau of Standards Holdings SME: Small Medium Enterprise SMS: Short Message Service SNS: Social Network Sites SPSS: Statistical Package for Social Sciences SOS: Save Our Souls TAG: Telecommunications Action Group TV: Television UPC: Universal Product Code US: United States USA: United States of America USD: United States Dollar WHO: World Health Organisation 11 WWW: World Wide Web 12 TABLE OF CONTENTS CHAPTER 1 ................................................................................................................................................. 21 ORIENTATION ........................................................................................................................................... 21 INTRODUCTION ............................................................................................................................................. 21 STATEMENT OF PROBLEMS TO BE ANALYSED ................................................................................................ 23 CRITICAL QUESTIONS TO BE ANSWERED ........................................................................................................ 23 OBJECTIVES OF THE STUDY ............................................................................................................................ 24 RESEARCH METHODOLOGY ........................................................................................................................... 24 ETHICAL CONSIDERATIONS ............................................................................................................................ 26 VALUE OF RESEARCH ..................................................................................................................................... 26 OVERVIEW OF THE STUDY ............................................................................................................................. 26 CONCLUSION ................................................................................................................................................. 27 CHAPTER 2 ................................................................................................................................................. 28 KEY CONCEPTS ........................................................................................................................................ 28 INTRODUCTION ............................................................................................................................................. 28 AFROCENTRICITY ........................................................................................................................................... 28 BLOGS ............................................................................................................................................................ 28 BUSINESS-TWO-BUSINESS (B2B) .................................................................................................................... 29 BUSINESS-TWO-CONSUMER (B2C) ................................................................................................................. 29 BRAND ........................................................................................................................................................... 29 BRANDS ......................................................................................................................................................... 29 BRAND COUNTERFEITING .............................................................................................................................. 30 BRAND EQUITY .............................................................................................................................................. 30 BRAND EXPERIENCE ....................................................................................................................................... 30 BRAND EXTENSIONS ...................................................................................................................................... 31 BRAND REVITALISATION ................................................................................................................................ 31 BRAND REPOSITIONING ................................................................................................................................. 31 BRANDED RETAILER ....................................................................................................................................... 32 BRAND SALIENCE ........................................................................................................................................... 32 COMMUNITY ................................................................................................................................................. 32 COMMUNITY DEVELOPMENT ........................................................................................................................ 33 COMMUNICATION ......................................................................................................................................... 33 COMMUNICATION CODES ............................................................................................................................. 33 COMMUNICATION BY OBJECTIVES ................................................................................................................ 34 COMMUNICATION PROCESS .......................................................................................................................... 34 COMPLIANCE GAINING .................................................................................................................................. 34 13 CONSUMER .................................................................................................................................................... 35 CONSUMER POWER ....................................................................................................................................... 35 CONSUMER BEHAVIOUR ................................................................................................................................ 35 CULTURE ........................................................................................................................................................ 35 CUSTOMER .................................................................................................................................................... 36 CUSTOMER TO CUSTOMER (C2C) ................................................................................................................... 36 DECEPTION .................................................................................................................................................... 36 DECEPTIVE COMMUNICATION ....................................................................................................................... 37 EFFECTIVE COMMUNICATION ........................................................................................................................ 37 E-COMMUNICATION (ELECTRONIC COMMUNICATION) ................................................................................. 37 EUROCENTRICITY ........................................................................................................................................... 38 FACEBOOK ..................................................................................................................................................... 38 HOME PAGE ................................................................................................................................................... 38 ICONIC BRANDS ............................................................................................................................................. 38 INTELLECTUAL CAPITAL .................................................................................................................................. 39 INTELLECTUAL PROPERTY .............................................................................................................................. 39 INDUSTRIAL AGE ............................................................................................................................................ 39 INFORMATION AGE ....................................................................................................................................... 40 INTERNET ....................................................................................................................................................... 40 INTRAPERSONAL COMMUNICATION ............................................................................................................. 40 INTERPERSONAL COMMUNICATION .............................................................................................................. 41 LOGO ............................................................................................................................................................. 41 MASS COMMUNICATION ............................................................................................................................... 41 MEDIA ........................................................................................................................................................... 42 MISREPRESENTATION .................................................................................................................................... 42 MYSPACE ....................................................................................................................................................... 42 NONVERBAL COMMUNICATION .................................................................................................................... 43 ORGANISATIONAL COMMUNICATION ........................................................................................................... 43 POSITIONING ................................................................................................................................................. 43 PUBLIC RELATIONS ......................................................................................................................................... 44 SEGMENTATION ............................................................................................................................................ 44 SOCIALLY RESPONSIBLE INVESTMENT ............................................................................................................ 45 SMALL GROUP COMMUNICATION ................................................................................................................. 45 SOCIAL INFLUENCE ......................................................................................................................................... 45 STORE BRAND ................................................................................................................................................ 46 SOCIAL MARKETING ....................................................................................................................................... 46 SOCIAL MEDIA ............................................................................................................................................... 46 SOCIAL NETWORKING .................................................................................................................................... 46 14 TWITTER ........................................................................................................................................................ 47 TRADEMARKS ................................................................................................................................................ 47 RETAILER........................................................................................................................................................ 47 VERBAL COMMUNICATION ............................................................................................................................ 48 WEBSITE ........................................................................................................................................................ 48 WORD-OF-MOUTH......................................................................................................................................... 48 WORLD WIDE WEB ........................................................................................................................................ 48 WRITTEN COMMUNICATION ......................................................................................................................... 49 VIRAL VIDEO .................................................................................................................................................. 49 VIRAL MARKETING ......................................................................................................................................... 49 VIRTUAL COMMUNITY ................................................................................................................................... 50 CONCLUSION ................................................................................................................................................. 50 CHAPTER 3 ................................................................................................................................................. 51 CONSUMER BEHAVIOUR ........................................................................................................................ 51 INTRODUCTION ............................................................................................................................................. 51 BRAND CONSUMER ....................................................................................................................................... 52 COMPLIANCE GAINING ........................................................................................................................................... 53 TYPES OF CUSTOMERS ........................................................................................................................................... 54 THE ROLES OF CUSTOMERS ..................................................................................................................................... 54 MENTAL AND PHYSICAL ACTIVITIES .......................................................................................................................... 55 THE IMPORTANCE OF CUSTOMER BEHAVIOUR ............................................................................................................ 56 EMOTIONS AND BRANDS ........................................................................................................................................ 56 FACTORS INFLUENCING CONSUMER BEHAVIOUR .......................................................................................... 57 INDIVIDUAL FACTORS ............................................................................................................................................. 58 MOTIVATION FOR CONSUMERS ............................................................................................................................... 58 Maslow?s Hierarchy of Human Needs ......................................................................................................... 59 PERCEPTION ........................................................................................................................................................ 60 LEARNING ABILITY ................................................................................................................................................. 61 ATTITUDE ............................................................................................................................................................ 61 GROUP FACTORS ........................................................................................................................................... 61 CULTURAL INFLUENCE ............................................................................................................................................ 62 CULTURE VALUES .................................................................................................................................................. 62 CHARACTERISTICS OF CULTURE VALUES ..................................................................................................................... 63 CULTURAL VALUES IN SOUTH AFRICA ........................................................................................................................ 64 CONSUMER BEHAVIOUR AND CULTURAL VALUES ........................................................................................................ 65 SOCIAL CLASS OF CONSUMERS ................................................................................................................................ 65 SOCIAL INFLUENCE ................................................................................................................................................ 66 REFERENCE GROUPS .............................................................................................................................................. 66 BUYERS CULTURE .................................................................................................................................................. 67 FAMILY INFLUENCE ................................................................................................................................................ 67 DECISION MAKING PROCESS ................................................................................................................................... 67 CONSUMERS PURCHASING DECISIONS....................................................................................................................... 68 STATUS BRANDING ................................................................................................................................................ 69 CONSUMER BRAND RELATIONSHIP ........................................................................................................................... 70 PRICING INFLUENCE ............................................................................................................................................... 70 CUSTOMER SATISFACTION FROM THE BRANDED RETAILER ............................................................................................. 72 CUSTOMER LOYALTY .............................................................................................................................................. 73 15 CONCLUSION ................................................................................................................................................. 74 CHAPTER 4 ................................................................................................................................................. 75 BRAND DEVELOPMENT .......................................................................................................................... 75 INTRODUCTION ............................................................................................................................................. 75 WHAT IS BRANDING ...................................................................................................................................... 76 BRAND EQUITY DEVELOPMENT ..................................................................................................................... 77 BRAND BUILDING .......................................................................................................................................... 81 BRAND DNA ....................................................................................................................................................... 83 BRAND POSITIONING ............................................................................................................................................. 84 BRAND AUTHENTICITY ........................................................................................................................................... 85 BRAND SALIENCE .................................................................................................................................................. 85 Building Brand Salience ............................................................................................................................... 86 BRAND LIFE ......................................................................................................................................................... 87 BRAND TRANSPARENCY .......................................................................................................................................... 87 CO-BRANDING ..................................................................................................................................................... 87 BRAND DOMINANCE.............................................................................................................................................. 88 BRAND RETURNS .................................................................................................................................................. 89 BRAND IDENTITY ................................................................................................................................................... 89 EMPLOYER BRANDING ........................................................................................................................................... 93 THE EMPLOYEE AND BRANDS .................................................................................................................................. 94 BRAND ENGAGEMENT AND INTERNAL BRANDING ........................................................................................ 97 BRAND COUNTERFEITING .............................................................................................................................. 97 TYPES OF BRANDING ..................................................................................................................................... 99 FAST MOVING CONSUMER GOODS (FMCG) ............................................................................................................. 99 CORPORATE BRAND ............................................................................................................................................ 100 CONSUMER BRANDS............................................................................................................................................ 102 DIGITAL BRANDING ............................................................................................................................................. 103 POWER BRANDS ................................................................................................................................................. 103 GLOBAL BRAND .................................................................................................................................................. 103 BRAND ENVIRONMENT ........................................................................................................................................ 104 CONCLUSION ............................................................................................................................................... 104 CHAPTER 5 ............................................................................................................................................... 106 BRAND MARKETING AND ADVERTISING ......................................................................................... 106 INTRODUCTION ........................................................................................................................................... 106 MARKETING AND ADVERTISING .................................................................................................................. 108 MARKETING PERSPECTIVE ........................................................................................................................... 109 PRODUCTION-ORIENTED PERSPECTIVE ..................................................................................................................... 109 SALES-ORIENTED PERSPECTIVE .............................................................................................................................. 110 MARKETING-ORIENTED PERSPECTIVE...................................................................................................................... 110 MARKETING CONCEPT ......................................................................................................................................... 110 CAUSED-RELATED MARKETING .............................................................................................................................. 111 PROMOTIONAL MIX ..................................................................................................................................... 111 RELATIONSHIP MARKETING ................................................................................................................................... 114 PERSONAL SELLING ............................................................................................................................................. 115 SALES MANAGEMENT .......................................................................................................................................... 116 SALES PROMOTIONAL .......................................................................................................................................... 117 MARKETING PUBLIC RELATIONS ............................................................................................................................. 118 16 DIRECT MARKETING ............................................................................................................................................ 119 INTERNET WITH SOCIAL MARKETING ........................................................................................................... 121 VIRAL MARKETING .............................................................................................................................................. 121 SOCIAL MEDIA AND BUSINESS-TWO-BUSINESS .......................................................................................................... 124 SOCIAL MEDIA AND BUSINESS-TWO-CONSUMER (B2C) ............................................................................................. 125 CUSTOMER TO CUSTOMER (C2C) .......................................................................................................................... 126 MARKETING WITH LOYALTY PROGRAMMES ................................................................................................ 127 LOYALTY PROGRAMMES ....................................................................................................................................... 127 ADVERTISING ............................................................................................................................................... 130 ONLINE ADVERTISING .......................................................................................................................................... 130 PODCAST ADVERTISING ........................................................................................................................................ 131 SPONSORSHIP .................................................................................................................................................... 132 DIGITAL RADIO ADVERTISING ...................................................................................................................... 135 PACKAGING ................................................................................................................................................. 135 DECEPTIVE ADVERTISING ............................................................................................................................. 138 ADVERTISING BRANDS ................................................................................................................................. 139 CHARACTERISTICS OF GOOD BRAND ADVERTISING ..................................................................................... 141 ADVERTISEMENTS INFLUENCE ON CHILDREN .............................................................................................. 141 PEER PRESSURE ON CHILDREN ............................................................................................................................... 143 CAUSE-RELATED MARKETING AND ADVERTISING ........................................................................................ 145 SOCIALLY RESPONSIBLE INVESTMENT ...................................................................................................................... 145 GREENTISING ..................................................................................................................................................... 145 Greenwashing ........................................................................................................................................... 146 CONCLUSION ............................................................................................................................................... 147 CHAPTER 6 ............................................................................................................................................... 148 SOUTH AFRICAN BRANDED RETAILERS .......................................................................................... 148 INTRODUCTION ........................................................................................................................................... 148 RETAILER...................................................................................................................................................... 148 BRANDED RETAILER?S COMMUNITY DEVELOPMENT ................................................................................... 149 SUPERMARKET ............................................................................................................................................ 150 SHOPRITE BRANDS....................................................................................................................................... 151 SHOPRITE ORGANISATION .................................................................................................................................... 151 CHECKERS .................................................................................................................................................... 152 CHECKERS CSI INITIATIVES .................................................................................................................................... 153 Employment .............................................................................................................................................. 153 Women of the Year Award ........................................................................................................................ 153 The Shoprite Checkers Strokes of Genius project ...................................................................................... 154 HIV/Aids Awareness .................................................................................................................................. 154 FOOD SAFETY ..................................................................................................................................................... 155 Training and Development ........................................................................................................................ 155 CAMPAIGNS ....................................................................................................................................................... 155 Toy 4 Toy Campaign .................................................................................................................................. 156 Golden Trolley ........................................................................................................................................... 156 Kaapse Klopse ........................................................................................................................................... 156 17 Mobile Soup Kitchens ................................................................................................................................ 156 FINANCIAL SERVICE PROVIDERS ................................................................................................................... 157 ABSA BRAND ............................................................................................................................................... 157 ABSA CSI ...................................................................................................................................................... 158 Absa Community Development ................................................................................................................. 159 Employee Community Involvement (ECI) .................................................................................................. 160 Casual Day ................................................................................................................................................. 162 World Aids Day .......................................................................................................................................... 162 Give As You Earn ....................................................................................................................................... 163 Early childhood development (ECD) .......................................................................................................... 164 Orphans and Vulnerable Children (OVC) ................................................................................................... 164 Big Fish School of Digital Filmmaking ....................................................................................................... 166 CLOTHING RETAILER .................................................................................................................................... 167 PEP BRAND .................................................................................................................................................. 167 PEP RE-BRANDING ....................................................................................................................................... 168 PEP?S COMMUNITY DEVELOPMENT ............................................................................................................. 170 CELLULAR SERVICE PROVIDER ...................................................................................................................... 170 VODACOM BRAND ....................................................................................................................................... 171 VODACOM CSI ............................................................................................................................................. 173 VODACOM FOUNDATION...................................................................................................................................... 174 STAKEHOLDER PARTNERSHIPS ................................................................................................................................ 174 VODACOM APPROACH ......................................................................................................................................... 175 EDUCATION ....................................................................................................................................................... 176 HEALTH ENGAGEMENTS ....................................................................................................................................... 177 INNOVATIVE MARKETING ............................................................................................................................ 178 MOBILE COMMUNICATIONS ........................................................................................................................ 179 FAST FOOD BRAND ...................................................................................................................................... 180 KFC BRAND .................................................................................................................................................. 180 KFC COMMUNICATING ................................................................................................................................ 181 KFC CSI ADD HOPE ....................................................................................................................................... 182 KFC HEALTH ...................................................................................................................................................... 183 BUCKETS FOR CURE ............................................................................................................................................. 184 ENVIRONMENTALLY-FRIENDLY KFC ........................................................................................................................ 184 AFRICAN BRAND .......................................................................................................................................... 185 RURAL BRANDS .................................................................................................................................................. 186 PROUDLY SOUTH AFRICA BRAND................................................................................................................. 188 PROUDLY SOUTH AFRICA BRAND CRITERIA .............................................................................................................. 189 PROUDLY SOUTH AFRICA BRAND CHALLENGES ......................................................................................................... 189 PROUDLY SOUTH AFRICA BRAND CAMPAIGN ............................................................................................................ 190 CONCLUSION ............................................................................................................................................... 194 CHAPTER 7 ............................................................................................................................................... 195 BRAND COMMUNICATION ................................................................................................................... 195 INTRODUCTION ........................................................................................................................................... 195 18 THE EVOLUTION OF COMMUNICATION ....................................................................................................... 196 BRAND COMMUNICATION ........................................................................................................................... 198 THE ROLE OF PUBLIC RELATIONS AND COMMUNICATION ............................................................................................ 200 DIGITAL DIVIDE IN SOUTH AFRICA ............................................................................................................... 203 ELECTRONIC COMMUNICATION ............................................................................................................................. 205 INTERNET AND BRANDS ........................................................................................................................................ 205 World Wide Web in Brands ....................................................................................................................... 205 NEW MEDIA BRAND COMMUNICATION ...................................................................................................... 210 SOCIAL NETWORK SITES ....................................................................................................................................... 210 SOCIAL MEDIA COMMUNICATION .......................................................................................................................... 211 DIGITAL BRAND ENGAGEMENT .............................................................................................................................. 215 THEORETICAL GROUNDING FOR BRANDED RETAILERS ................................................................................ 216 OVERVIEW OF MERSHAM & SKINNER?S MODEL ........................................................................................................ 217 A MODEL OF THE BI-DIRECTIONAL COMMUNICATION PROCESS. ADAPTED FROM MERSHAM & SKINNER 1999:10 ................... 217 The Mersham & Skinner?s Communication Process .................................................................................. 217 OVERVIEW SHANNON?S MODEL ............................................................................................................................ 218 The Shannon?s Communication Process .................................................................................................... 219 THE ROLE OF BRANDED RETAILERS AND CUSTOMERS IN MERSHAM & SKINNER?S AND SHANNON?S MODEL ......................... 220 ANALYSIS OF MERSHAM & SKINNER?S AND SHANNON?S MODEL FOR EFFECTIVE COMMUNICATION...................................... 221 INCORPORATION OF SOCIAL MEDIA FOR BRANDED RETAILING ................................................................... 221 PERSONAL COMMUNICATION ................................................................................................................................ 222 SYNTHESIS ................................................................................................................................................... 226 CONCLUSION ............................................................................................................................................... 227 CHAPTER 8 ............................................................................................................................................... 228 RESEARCH PROCEDURES .................................................................................................................... 228 INTRODUCTION ........................................................................................................................................... 228 THE NATURE OF THE RESEARCH ................................................................................................................... 228 THE SAMPLING PROCEDURE .................................................................................................................................. 228 Sampling Methods .................................................................................................................................... 229 Non-Probability Sampling ......................................................................................................................... 230 Probability Sampling ................................................................................................................................. 230 THE SAMPLE SIZE ................................................................................................................................................ 231 Selection of The Sample ............................................................................................................................ 232 PROCEDURES FOR DATA COLLECTION .......................................................................................................... 233 COLLECTION OF DATA USING PERSONAL INTERVIEWS ................................................................................. 234 QUESTIONNAIRES ................................................................................................................................................ 235 FIELDWORK ....................................................................................................................................................... 235 THE RATIONALE BEHIND THE QUESTIONNAIRE .......................................................................................................... 236 PRE-TESTING ................................................................................................................................................ 240 ANALYSIS OF DATA ...................................................................................................................................... 241 STATISTICAL PACKAGE FOR SOCIAL SCIENCE (SPSS 17) .............................................................................................. 241 SETTING UP THE CODING PARAMETERS IN SPSS ....................................................................................................... 241 The variable view ...................................................................................................................................... 244 Data view .................................................................................................................................................. 244 Entering the data ...................................................................................................................................... 245 19 Verifying the accuracy of the coding process ............................................................................................ 245 Correlation of data .................................................................................................................................... 246 Tables and graphs ..................................................................................................................................... 247 CONCLUSION ............................................................................................................................................... 251 CHAPTER 9 ............................................................................................................................................... 252 ANALYSIS AND INTERPRETATION OF DATA ................................................................................... 252 INTRODUCTION ........................................................................................................................................... 252 GENDER OF RESPONDENTS .......................................................................................................................... 252 RESPONDENTS AGE ...................................................................................................................................... 253 RESPONDENT?S EMPLOYMENT STATUS ....................................................................................................... 254 EMPLOYMENT DURATION ........................................................................................................................... 255 METHOD OF PURCHASING OF GOODS ......................................................................................................... 256 A PARTICULAR BRANDED PRODUCT ............................................................................................................ 257 BRANDED PRODUCTS THAT ADD VALUE TO A CONSUMERS LIFE ................................................................. 258 SHOPPING AT A SPECIFIC BRANDED RETAILER ............................................................................................. 259 FREQUENTLY VISITED BRANDED STORES ..................................................................................................... 260 SERVICE DELIVERY ....................................................................................................................................... 261 BRANDED PRODUCTS SUITABLY PRICED ...................................................................................................... 261 FORMS COMMUNICATION .......................................................................................................................... 262 BRANDED RETAILER?S ADVERTISEMENTS ..................................................................................................... 263 BRANDED RETAILERS SUPPORTED ............................................................................................................... 264 COMMUNITY DEVELOPMENT ...................................................................................................................... 265 CUSTOMER SATISFACTION ........................................................................................................................... 266 ADVERTISEMENTS USAGE ............................................................................................................................ 267 PRODUCT INFLUENCE .................................................................................................................................. 268 BRANDED PRODUCTS .................................................................................................................................. 269 CUSTOMER SERVICE..................................................................................................................................... 270 RESPONSE TO CUSTOMER QUERIES ............................................................................................................. 271 PROUDLY SOUTH AFRICAN BRANDS ............................................................................................................ 272 REASONS FOR NOT SELECTING A PROUDLY SOUTH AFRICAN BRAND .......................................................... 272 WORDING IN ADVERTISING ......................................................................................................................... 273 MEDIA?S INFLUENCE ON CHILDREN?S AND PARENTAL BEHAVIOUR ............................................................. 274 MEDIA INFLUENCING THE MOULDING OF CHILDREN AND PARENTAL BEHAVIOUR ...................................... 274 CONCLUSION ............................................................................................................................................... 275 CHAPTER 10 ............................................................................................................................................. 276 CONCLUSIONS AND RECOMMENDATIONS ...................................................................................... 276 INTRODUCTION ........................................................................................................................................... 276 CONCLUSIONS ............................................................................................................................................. 276 RECOMMENDATIONS .................................................................................................................................. 280 20 REFERENCES ............................................................................................................................................... 282 ADDENDA .................................................................................................................................................... 306 ADDENDUM 1: QUESTIONNAIRE ................................................................................................................... 307 ADDENDUM 2: SAMPLE LETTER TO A BRANDED RETAILER ............................................................................. 316 INDEX .......................................................................................................................................................... 318 21 C h a p t e r 1 ORIENTATION Introduction This study focuses on the forms of communication used by branded retailers to influence consumer behaviour. The study also investigates the role that public relations play within the industry of branding. It also deals with the perceptions that are held by the consumer about the branded retailers. Branded retailers have established networks throughout the country. These retail outlets have developed into a house of brands that not only stock their own brands but also stock a variety of other popular brand products. Branded retailers use this variety of product to attract consumers. This study investigates how branded retailers establish mutual business relationships to ensure their position in the market place. Puth & Ewing (1998:113) state that the market place is a highly competitive battleground forging superior positioning and performance. It would be interesting to note how consumers perceive this relationship and how their behaviour is influenced. Brands communicate information or messages to the observer and influence the observer either positively or negatively. The branded retailer, however, regardless of the type of brand, has an ethical and moral responsibility to its publics. According to Mersham & Skinner (1999:17) communication codes refer to a collection of related signs, symbols and the rules that regulate their use in communication. Mersham & Skinner (1999:17) further state that words are signs, symbols or grammar encompassing a set of rules that regulate their use. In the corporate environment, images play an important role in communicating the company?s objectives to its publics. Lubbe & Puth (1994:194) contend that corporate image deals with the interaction of all experiences, impressions, beliefs, feelings and knowledge people have about the company. 22 Image contributes to the company?s life. Lubbe & Puth (1994:194) further add that everything the company does in or does not will either add or detract from the company?s various products, services, company?s stationery, company?s assets such as property, transportation including the treatment of employees. According to Rensburg & Cant (2003:191) brands contribute added value to the service or products that a company offers, by imbuing them with emotional, social, and even spiritual resonance, thereby offering the buyer or user a sense of meaning or identity. Rensburg & Cant (2003:173) state that a company?s brand is more than just an image. It is presented to customers through marketing communication. It is an experience that the customers have of a company and its products. According to Rensburg & Cant (2003) the success of marketing communication message does not solely rely on its appeal, but also on how it aligns itself with the delivery of actual promises that it makes to customers. According to Roocroft (2008) people on the Internet buy what they look for and do not necessarily remain brand loyal. Well-known companies with recognisable brands have placed great emphasis on their brand names. These companies have, over the years, invested enormous amounts of money in promoting their brand so that customers become somewhat accustomed to purchasing into a brand name. Roocroft (2008) adds that many of these companies have not recognised the benefits of the Internet. Skinner et al. (2006:43) contend that marketing has the ability of attracting and satisfying customers on a sustained basis and in doing so it is able to achieve its objectives. An organisation, therefore, needs both marketing and public relations. Public relations play an important role when it pertains to a brand or when the public experiences disappointment, especially when the brand does not deliver what it promises. According to Naidoo (2002:139) human beings around the world aspire to five core values: honesty, fairness, responsibility, respect and compassion. Naidoo (2002) adds that if any company does not embrace these core values it will run the risk of becoming an economic liability. 23 Statement of problems to be analysed The field of communication is vast and the different forms of communication have a direct influence on the behaviour of the consumer. The understanding of how such influences relate to consumer?s perceptions on the return of value or the branded retailer?s promise for customer satisfaction. Critical questions to be answered Question 1: What forms of communication are utilised to communicate to targeted public domains? This question examines the various forms of communication that branded retailers use to inform their publics. This also focuses on how the message is transmitted by the branded retailer (a sender) and influences the behaviour of the consumer (the receiver). See chapters 7 and 9. Question 2: Does public relations represent both the branded retailer?s and its public?s interest? The role of public relations within the context of branding and towards the consumer is vital for any branded retailer. Public relations are regarded as the front page of any organisation. See chapter 5. Question 3: Do branded products deliver responsibly to consumers? It is vital that branded retailers operate with ethics and integrity when it is dealing with their publics. The line of products must be of a superior quality and should provide consumer satisfaction always. See chapter 5 and 7. Question 4: What type of marketing strategies do retailers employ in order to attract consumer awareness? The question deals with the various communication strategies that branded retailers uses to draw the consumers attention. This question also looks at what new trends are being used to achieve this. See chapter 6 and 7. 24 Question 5: Do branded retailers contribute to community development? The research on branded retailers illustrates how they impact community development within their established environment. The research examines whether their involvement with communities is significant in relation to the support they enjoy from the consumers that reside within these community. See chapter 6. Question 6: How does supporting a branded retailer benefits the consumer? The above question examines how consumers benefit by supporting branded retailers. It also takes a closer look at what these benefits are and how both the consumer and the branded retailer establish a cordial relationship. See chapter 6. Objectives of the Study The objectives of this study are to: i) survey all forms of communication utilised in promoting brands; ii) ascertain what influence brands have on consumer behaviour; iii) evaluate consumer perceptions of brands in community development; iv) establish the role of public relations and its effectiveness within the branded retail industry, and to v) investigate how the quality of service culture is maintained. Research Methodology According to Babbie (2007:289) there are specific things that need to be taken into account in all forms of research. This research study will comprise of a qualitative as well as a quantitative section. The qualitative phase will concentrate on the content of the research framework as well as recently published literature on the influence of brand retailers on consumer behaviour. In the quantitative, empirical phase of the study, a representative sample of the consumers will be surveyed by the use of a questionnaire to determine what their perceptions are about branded retailers and brand products. 25 The sampling will represent all the fundamentals of a population or universe. Babbie (2007:190) states that a sample is actually a selected aggregation of elements from a study population. According to Malhotra in Rampersad (2007:132) a population or universe is a combination of all the elements, sharing some common set of characteristics that involve the universe. According to Babbie (2007:244) a typical survey, the researcher selects a sample of respondents and administers a standardised questionnaire to them. Dornyei (2002:14) states that a typical questionnaire is a highly structured instrument for data collection, with most items either asking about very specific pieces of information or giving various response options for the respondents to choose from. Mouton (2001:100) states that the data collected must be by the usage of a measuring instrument for an example, a questionnaire is one such measuring instrument (Mouton, 2001). This makes the questionnaire data particularly suited for quantitative analysis. According to Herr & Anderson (2005:80) data analysis begins immediately and guides the process for further data gathering and decision making. Mouton (2001:108) states that it is reasonably easy to capture quantitative numerical data into a computerised format. Data can be analysed through computer programmes such as Microsoft Excel, MoonStat or Statistical Package for Social Sciences (SPSS). Du Plooy (2002:147) states that in addition to the use of questions, scales, self-administered questionnaires and interview schedules, researchers who intend to collect information by means of observations can use different instruments, or even design their own. Personal interviews consisting of both structured and semi-structured questions were utilised to collect data (Du Plooy, 2002). According to Rampersad (2007:140) with regard to the data collection technique used for the survey, no method can be termed as being the best, although personal interviews enjoy maximum advantage compared to others. Rampersad (2007) further mentions that the method selected pertains to the research project undertaken; the geographic spread of the target population and the length of the questionnaire. According to Henning (2004:6) when data are documented it has to go through the process of analysis. The researcher captured the responses on the questionnaires, and analysed data by using SPSS 17 and in conjunction with Microsoft Office 2010, Microsoft Excel. 26 Ethical Considerations This study adhered to the ethics of research and the respondents? rights in terms of the following: o Respondents were informed that participation is voluntary; o Written informed consent was sought from the respondents; o Confidentiality was guaranteed at all times; o Respondents were informed of the purpose for the study as a requirement for the researcher to carry out the research project to fulfil the doctoral degree requirements in Communication Science; o Respondents were assured of anonymity; o The respondents were given the right not to answer sensitive and highly personal questions. Value of Research The study will provide the Department of Communication Science with researched work which would assist in the compilation of lecturing material pertaining to public relations. This study would also provide a meaningful role in assisting branded retailers to ensure that they establish consumer responsibility and confidence within their publics. The research would also provide feedback on branded products and how it can effectively contribute towards community development. This study would also be useful to other future researchers who might have an interest in the same or related fields. Overview of the Study This thesis is divided into the following chapters: Chapter Two: The various key concepts are highlighted and presented alphabetically so that the reader can easily return to this chapter to crosscheck the meanings of the concepts that the researcher employed for this study. Chapter Three: In this chapter, consumer behaviour is explored in relation to the branded retailer and the various strategies used by them to influence the consumer. 27 Chapter Four: This chapter deals with brand development and how it becomes influential over time. The chapter also presents the role and the importance of brand equity. Chapter Five: This chapter surveys the role of public relations in advancing the branded retailer to effectively apply marketing and advertising strategies to acquire their market share. Chapter Six: This chapter provides insights of the various strategies used by major South African branded retailers and how they impact community development with special reference to the rural sector. Chapter Seven: The reader is presented with a clear understanding of brand communication strategies and the various forms of communication used by branded retailers. The theoretical framework for this study is also discussed. Chapter Eight: This chapter provides insights into the research methodology techniques used in this study. Specific methods of research were used to investigate and to ensure that the appropriate technique for this research study was utilised. Chapter Nine: This chapter provides the findings for this research. It presents perspectives of respondents who volunteered to participate in this research. Findings are provided in a form of graphs and tables with written explanations. Chapter Ten: The conclusions for the findings of this study are coupled with the recommendations for the branded retailers are presented. CONCLUSION This study will provide a useful insight as to how branded retailers influence the behaviour of consumers and how brands are supported. It is envisaged that the study will assist local manufactures to develop and support the establishment of indigenous brands. This study will also provide valuable information for the Department of Communication Science and future students who wish to embark on a similar study. In the next chapter the various key concepts that deal with this study will be explored. 28 C h a p t e r 2 KEY CONCEPTS INTRODUCTION The previous chapter provided an overview of how branded retailers use brands to influence consumer behaviour. In this chapter, the various key concepts that conceptualise consumer behaviour will be explored. These key concepts are cited in an alphabetical order, which will enable the reader to gain an overall insight of this research. Afrocentricity According to Du Plessis & Rousseau (2007:50) Afrocentricity is defined as inclusive, participative (or shared) group orientation that represents a collective African will. The practical associations of Afrocentricity include authentic, Africa-based behaviour in the socio-cultural, political, economic, business, and marketing sectors. Asante (2010) mentions that Afrocentricity deal with African ideologies and values, which is expresses the highest forms of African culture. Consciousness is stimulated as a functional aspect of any revolutionary approach to phenomena. The cognitive processes coupled together with structural aspects of a paradigm must be in line with the functional aspect. Blogs According to Harden & Heyman (2009:234) a blog is a frequently updated online journal usually intended for public viewing, the shortened form of ?web log?. A blog is regarded as an online personal journal or diary which is frequently updated by the owner or a designated person/s. A blog is a platform where one expresses ones ideas or thoughts to the world. A blog is a virtual place to share your thoughts and your passions (Blog Basics, 2004). 29 Business-Two-Business (B2B) According to Business Dictionary (2010c) B2B refers to a large volume trading that is conducted between two or more firms with competitive and also with stable prices. This process deals with fast delivery turnaround times and provides special arranged payment plans. Harden & Heyman (2009:233) state that ?B2B?is an abbreviation that refers to ?Business-to-Business?. This refers to businesses that market their services or products to other business houses. Business-Two-Consumer (B2C) According to Harden & Heyman (2009:233) B2C is an abbreviation for ?Business-to- Consumer?. Business to Consumer deals with transactions that are between a business and the end user that is regarded as a consumer (Cooper, 2010). According to Answers.com (2011) that B2C when business occurs between companies and individual consumers, unlike B2B business between two companies. Brand Tech Target (2010a) states that a brand name is regarded as a distinctive product, service, or concept. Branding is a process that allows one to create and disseminate information about the uniqueness of the brand name. Branding also deals with the corporate identity of the business and as well as individual product and service providers. A brand name relates to a word, letter, or even may deal with words maybe used to in combination with one another (Perreault & McCarthy, 1996). Doyle & Stern (2006:163) state that a brand is what makes up the heart of marketing and business strategy. Brands According to Walker et al. (2010:58) brands are regarded as a unique mark which is used to identify individual animals throughout their entire life. A hot-iron is used in the branding process. According to Ind (2003:4) brands contribute towards our well-being and further our individuality. They enhance our self-esteem, socialisation and self-actualisation. Brands also help us to obtain value and at the same time also disappoint. Our beliefs can be easily manipulated and limited our freedom of choice. Landa (2006:4) states that the market place 30 of today is overcrowded with almost all brands that are parity goods and service products that are equal in value. Brand Counterfeiting According to Sybert (2008:12) counterfeiting brand-name products is commonly violated in China. Fairley (2008:20) states that brand owners globally face a key challenge in regards to the rising advancements of counterfeited products. Hart & Murphy (1998:82) state that evidence of counterfeiting is clearly visible in all parts of the world. Sub-standard sporting goods such as shirts that bear some major brand names like Lacoste, Adidas, or Fila logos are available globally. Brand Equity Drummond & Ensor (2005:228) state that an organisation should ensure that it strives for brand equity which provides the consumer with value. This will result in either the consumer showing greater loyalty or being able to pay a premium price. Perreault & McCarthy (1996:295) state that the strength of a brand?s overall value in the market is based on how it performs. Brand equity is considered to be higher when many satisfied customers continue to buy the brand and when retailers continue stock it. Brand Experience Landa (2006:9) states that a brand experience deals with an individual audience as it interacts with a brand. Landa (2006) further states that every time s/he interacts with that brand brings about either a positive, negative, or neutral experience. Brakus et al. (2010) mention that brand experience can be related as sensations, feelings, perceptions, and behavioural that is influenced by the brand. This forms a part of the brand?s design and identity, packaging, communications, and environments. They further state that in order to develop the scale, which is distinguish by several experience dimensions: sensory, affective, intellectual, and behavioural. 31 Brand Extensions Doyle & Stern (2006:180) state that brand extensions use the same brand name that is successfully established in one market or channel, to enter new ones. According to Hart & Murphy (1998:6) brand extensions have in many cases proved to be successful strategy. It has assisted in reducing the risk and cost of new product entries and increased the brand exposure making it more attractive and contemporary to consumers. Drummond & Ensor (2005:238) states that organisations occasionally attempt to extend the use of a brand name to enhance new products within the same broad market. High brand equity brands are often candidates for brand extensions. This is normally because they have the ability to increase the attractiveness of the new products. Brand Revitalisation Drummond & Ensor (2005:239) state that brand revitalisation deals with the gaining of volume for sales by expanding the market for a brand. Landa (2006:118) states that any major brand renewal and renovation, brand identity, and positioning in the marketplace is considered brand revitalisation. Venture Republic (2010) states that brand revitalisation is normally conducted for fading brands or a group of brands is necessary. Changes in the marketing environment, competitors? strategies, consumer behaviour, evolutions of cultures and a host of other factors may contribute to erosion of the brand equity. A brand revitalisation programme provides strategies that recapture lost sources of brand equity. This also provides a way to identify and establishing new sources of brand equity. Brand Repositioning Workgroup Corporation (2010) states that brand repositioning are required when a brand tries to change its existing market positioning or image to realign itself with target masses. This is often required when a brand has become unpopular, stale or even ignored. This may occur because its original market has matured or has gone into decline. According to Drummond & Ensor (2005:239) brand repositioning is important in order to increase its competitive position and therefore increase sales volume by seizing market share from rival products. According to Malhotra (2007a:23) market share is a collection of individual customer choices. We need to understand how and why households choose one product over another. This insight will provide the reasons for the success and the failure of the product. 32 Workgroup Corporation (2010) further states that depending on what needs to be achieved or what are the defined objectives of brand repositioning; the exercise may involve minor changes or a major overhaul. Brand repositioning is not about changing the product but the brand attributes that communicate the brand image to the target masses. Branded Retailer Perreault & McCarthy (1996:388) state that retailers interact directly with consumers and they must use strategic planning since this is critical to their survival. According to Waters (2010) a retailer is one who sells goods or commodities directly to consumers. These goods are acquired from the manufacturer or wholesaler and are sold to the end user at a marked up price. Ellwood (2000) states that retailers carry lines that offer the consumer value for money. This may be carefully balanced with their own-label brands. Brand Salience According to Elliott & Percy (2007:110) the concept of brand salience transcends beyond simple measures of brand awareness. Elliott & Percy (2007:154) further avers that brand salience is often regarded as the top-of-mind awareness. Gylling & Lindberg-Repo (2006:264) state that the recognition of a brand relates to a consumer?s ability to confirm is or her prior exposure to the brand. Community According to Edwards (2007) community deals with mutual respect. Communities are formed without having to share common beliefs, without having shared identity or defining themselves in terms of one another. He further mentions that numbers; ideals and desires are irrelevant; even the extent of mutual support and patronage is largely irrelevant. A community can be regarded as a state of mind. Woodward (1996) states that populations of different species occupy a given place and a time are viewed as interdependent. It deals with a combination of interacting species. 33 Community Development According to the Community Development Exchange (2010) the premise of community development deals with a wealth of knowledge and experience. If this is used in creative ways, it will result in high levels of participation and can be channelled into collective action to achieve the communities? desired goals. Gilchrist (2009) states that community development deals with providing assistance for people that live within the community. It deals with finding ways to gain understanding and co-operation between individuals. It enables them to make changes in their own lives and for the greater good. Communication According to Littrell (1991:41) communication is a process that deals with the conveying a message, a thought, or an idea in a way that the message is received and understood. Communication provides the opportunity for people to share ideas, facts, opinion and feelings. Communication is essential for one to be able to express his/ her needs or desires. According to Sternberg (1998:483) communication can be conducted either verbally or nonverbally. This process of transmitting messages is to fulfil a need, i.e., the communicator is an individual who initiates the process of communication by engaging another. The purpose for communication can be found in humankind. It is the need to discover, to relate, to persuade and to play (De Beer, 1998:8). Communication Codes Codes communicate or express messages to the observer. There are diverse types which maybe similar but have different meanings to different groups. Communication codes are a collection of related signs and/or symbols and the rules that regulate their use in communication. Words, for example, are signs or symbols and grammar is a set of rules that regulate their use (Mersham & Skinner, 1999:17). A code, in communication, is a set of symbols and rules which carry information. By this extended definition all written and spoken languages are codes (Infoplease, 2007). 34 Communication by Objectives According to Mersham & Skinner (1999:48) CBO is related to a desired end-result of communication which is measurable in terms of the achieving a condition or an action, which will results in satisfying the need or needs of the communicator. Fourie quoted by Mersham & Skinner (1999:40) designed the system of Communication by Objectives, which is viewed as a planned communication process that can be divided into four basic parts or stages: ? identifying of needs, ? formulating the objective, ? analysing the destination and ? arranging for feedback. Communication Process Communication can only be appreciated and realised if it is communicated correctly. Mersham & Skinner (1999:10) state that the communication process is made up of individuals being both the communicator and the recipient. Sanchez (2010) adds that the communication process is the guide towards realising effective communication. It is through the process that the sharing of a common meaning between the sender and the receiver takes place. Individuals that follow the communication process will have the opportunity to become more productive in the various aspects of their profession. Effective communication promotes understanding. Compliance Gaining According to Gass & Seiter (2003:236) compliance gaining generally deals with persuasion, which is aimed towards getting others to do something or to act in a certain way. Compliance gaining research deals primarily with the behavioural change. Compliance gaining studies have concentrated on influence in interpersonal, face-to-face contexts rather than one to many contexts. Klopper in Rugbeer (2005:24) states that specific instances of communication can be used for compliance gaining continuum that advances from cooperation to competition to confrontation. Gass & Seiter (2003:244) state that regardless of the type of power that may be at work, one thing remains obvious: power affects compliance gaining behaviour. 35 Consumer Du Plessis & Rousseau (2007:72) state that a consumer is regarded to be the user of the product. An example, a parent may purchase breakfast cereal for the whole family or a particular brand just for the children. The child is the consumer of the product, by refusing to eat anything else; s/he might exert considerable influence on the parent to purchase a particular brand. According to Reference.com (2010) consumers are individuals or households that use goods that are generated within the economy. This concept is used in different contexts, so that the usage and significance of the term may vary. Consumer Power Kleindl (2003:125) states that the Internet has the ability to provide information to increase consumer?s power to be exposed to other providers. Customers are able to voice their opinions on businesses and products at discussion sites and business sites. The Amazon website provides consumers the opportunity to posted comments on a book so others are able to view an average reader?s opinion (Kleindl, 2003). Consumer Behaviour According to Du Plessis & Rousseau (2007:6) customer value, customer relationship marketing, customer retention, and lifetime value of customers are crucial aspects that organisations must manage through marketing strategies. Smilansky (2009:1) states that consumers become constantly inundated with repetitive traditional advertising messages, this tends to bombard their lives, interrupting their shows on television. The branded retailer is aware of the influence that traditional advertising has over customers and this will most likely influence their purchasing behaviour in the future. Culture According to O?Neil (2010) culture is a powerful tool for human survival; however it is a fragile phenomenon. It constantly changes and is easily lost since it exists only in our minds. All our written languages, governments, buildings, and other man-made things are merely the result of culture. Blem et al. in Du Plessis & Rousseau (2007:47) state that culture forms a set of learned beliefs, values, attitudes, habits, and behaviour that is shared by a society. They 36 further state that it is transmitted from one generation to the next by members of society through the use of language and symbols. Customer According to the Shuman et al. (2002:9) companies acknowledge that it is profitable to satisfy their customers? needs, they focus on what they do best and consult with both their customers and other business entities in order to provide a complete solution. All parties involved in this process must receive something they value in order for this to work effectively and if this is attained, then, by definition everyone is regarded to be a customer. Customer To Customer (C2C) According to Investopedia (2010) Customer to Customer (C2C) businesses have many online operations. An example is the online auctions industry and classifieds such as Ebay and Craig?s List which are regarded to be very successful customer to customer business models. These sites do not look to directly sell goods to their members, instead the customers are exchanging with others (Investopedia, 2010). According to Livraghi (2000) person-to-person transactions are regarded to be the oldest form of e-business. They have been there from the inception, long before there was any widespread use of the Internet. This type of transaction is all around and is invisible to anyone thinking that business is supported on large and visible websites. Online auctions have gained momentum however it is only one of many ways of helping people to deal directly with each other or to buy more conveniently. Deception According to Berger & Burgoon (1995:73-74) deception is a premeditated message that is transmitted by a sender to create a false belief or conclusion for the receiver. Soanes (2002:224) defines deception as the act of deceiving. The verb deceive is to deliberately cause to believe something false, to give a mistaken impression (Soanes, 2002). Sykes (1983:246) states that to deceive is to persuade of what is false, to mislead purposely. 37 Deceptive Communication According to Rodriguez (1996:111) deceptive communication is seen as a strategic choice that one engages to secure some social goal. This particular conceptualisation is consistent with an individualistic social orientation because individual choice is a central concept. That is, individuals choose to deceive others since it serves their self-interests. Gass & Seiter (2003:260) argue that deceptive communication strives to persuade and is a general persuasive strategy that aims to influencing the beliefs, attitudes and behaviour of others by means of distorted message. Berger & Burgoon (1995:73-74) state that deceptive communication is a make-up of distorted message/s. This results in providing deliberate falsification or omission of information by a communicator. The communicator does not believe in this message (Miller, 1983:92-93). Effective Communication Albanese (2010) states that moving people emotionally is not regarded as magic, it is all about effective communication. Anyone can achieve effective communication by using a simple tool that has an uncanny ability to pinpoint why any message works or does not work, and how to improve it. According to Easy Communication (2006) communication takes place when ideas or feelings are shared with others. Information transmitted provides understanding to another person causing him/ her to respond. Gestures such as lips moving, the wave of hands or the wink of an eye may convey more meaning than even written or spoken words. The basic elements of the communication process include the communicator, communicatee, message, channel and feedback. E-Communication (Electronic Communication) Knowledgeway (2010) states that electronic communication provides a powerful new channel that provide a mix of options to interact. E-Communication is a form of digital communication that metaphorically could be characterised as the central nervous system of today?s organisations. O?Brien (1997:213) states that organisations are able to use electronic mail, voice mail, bulletin board systems, and facsimile to send messages in text, video, or voice form or transmit copies of documents and this can be executed within seconds. 38 Eurocentricity Schiffman & Kanuk in Du Plessis & Rousseau (2007:50) state that eurocentricity focuses on individualism, materialism, a work ethic, achievement, and success. They further state that individuals being themselves, self-reliance, self-interest, self-confidence, self-esteem, and self- fulfilment are popular expressions of individualism, implying a rejection of dependency on others. Facebook According to the Blippr (2010a) Facebook provide people the power to share and opens the world by connecting them. Millions of people utilise Facebook on a daily basis to keep up with friends, to upload an unlimited number of photos, share links and videos, and learn more about the people as they meet online. Answers.com (2010a) states that Facebook serves as an online social networking directory that connects people with friends and others, who work, study and live around them. Home Page According to Mersham & Skinner (1999:194) in order for one to offer information through the World Wide Web (www) s/he must first establish a home page. A home page is designed with text and graphics that is displayed to welcome the user and it often provides information about the organisation or a person. Websites consist of numerous electronic pages that are linked to make the visit interactive. Iconic Brands Mann (2008:15) states that product placement in movies can either be received positively or negatively. Tom Cruise acted in the movie Top Gun increased sales for aviator jackets as well as the air force and the navy recruitment increased by 500%. Mann (2008) further states that the placement of 23 branded products in the 1 hour 23 minutes of the James Bond movie ?Die Another? the audience were quick to dubbed the movie Buy Another Day. According to Brown (2007) iconic brands tend to inspire an enduring form of affection that any marketer would want to be attached to the brand. Iconic status has traditionally been established over a large period of time and this is relatively enjoyed by few brands. 39 Intellectual Capital Slater in Kleindl (2003:141) states that intellectual capital refers to the company?s knowledge, the results of ideas and its creativity, and symbols that represent products, companies or brands. Slater in Kleindl (2003) further states that the ownership of intellectual capital is protected by copyrights, trademarks, legal notices, and patents. According to SearchCRM (2009) intellectual capital is knowledge which can be exploited for some money- making or other useful purpose. The term deals with ideas of the intellect or brain-power that has an economic concept of capital. Intellectual capital can also include the various skills and knowledge that a company has developed about the manufacturing process of its goods or services (SearchCRM, 2009). Intellectual Property World Intellectual Property Organisation (2009) states that ?intellectual property? consists of creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce. Further intellectual property is divided into two categories: Industrial property, which includes inventions (patents), trademarks, industrial designs, and geographic indications of source; and copyright, which includes literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs (World Intellectual Property Organisation, 2009). Industrial Age Hart & Murphy (1998:14) state that modern branding and individual brand names have their origin in the 19th century. The industrial revolution and the development of advertising and marketing techniques made the selecting of a good brand name important. According to Reddy (2004:13-16) the industrial age spans over 300 years and originated in Britain which gave rise to a community that moved away from the pastoral age of agriculture, to an age of urbanisation and that focused on industry. The industrial age clearly reveals how the occupations of people have changed from working on farms to that of working in factories. Transportation in this age had a great impact on the various communities in regards to the transportation goods that were manufactured. Many inventions and discoveries enhanced this age. 40 Information Age According to Reddy (2004:13-16) all the achievements in the industrial age established the way forward for the information age in 1970. During this time there was a decline in the industrial production. Countries are part of an Internet-based, integrated global knowledge driven economy. These different countries have realised that if they do not move into this new era they will remain in the industrial age. An important feature on the information age is the networking of computers. This process made the global village more of a reality. Internet According to Mersham & Skinner (1999:150) the Internet is an abbreviated term used for International Network. It allows millions of computers and other electronic devices such as cell-phones, portable computers, computer networks, pagers and video cameras, via telephone lines and satellites which communicate with each other. Kristula (2010) states that the Internet comprises of millions of computers that are located around the world that are all connected to one another. The connectivity of these computers is either by phone lines, fibre optic lines, coaxial cable, satellites, or wireless connections. When the user logs on to the Internet, s/he is given access to many computers that are connected and located globally. Intrapersonal Communication Mersham & Skinner (1999:148) state that communication starts with the individual and that s/he must be in tune with the organisation?s corporate culture, its mission and vision. Intrapersonal communication is defined as the communication process that takes place within an individual. Intrapersonal communication is the act of a person having internal dialogue which is commonly referred to self-talk (Relationship with self, 2007). 41 Interpersonal Communication Interpersonal communication in the organisation deals with the relationships between managers and subordinates (Mersham & Skinner, 1999:148). These relationships are important to the success of the organisation and they contribute to the mutual satisfaction, reward, high productivity and to a sound reputation of the organisation. According to Answers.com (2010d) some of the types of interpersonal communication that are commonly used within a business organisation include staff meetings, formal project discussions, employee performance reviews, and informal chats. Interpersonal communication with those outside of the business organisation can take a variety of forms as well, including client meetings, employment interviews, or sales visits. In order to understand the principles of effective interpersonal communication, it is helpful to look at the basic process of communication. Foundation Coalition (2001) states that interpersonal communication is a process which refers to the communication of ideas, thoughts, and feelings to another. Our interpersonal communication skills are learned by behaviours that can be improved through knowledge, practice, feedback, and reflection. Logo Tech Target (2010c) states that brands are often expressed or referred to as logos that are graphic representations of the brand. Walsh et al. (2010:76) states that a logo is a brand element that can be expressed as graphic representation or image which triggers the memory of the consumer to associate with the targeted brand. Mass Communication According to Mersham & Skinner (1999:166) mass communication is a process of delivering information, ideas and attitudes to a sizeable and diversified audience through a medium of choice. The mass media is described as technological and social institutions (such as newspapers, radio, and television) that are involved in the production and distribution of messages to large audiences such as whole communities. Kimmel (2005:34) technological innovations have certainly played an important role in the transforming of mass 42 communication. The emergence of the Internet and the subsequent information age has open a new medium and also altering existing media vehicles. Media Oasis (2010) states that media refers to information conveyed through any kind of media format. According to Iwebtool (2010) media deals with various messages are communicated through the television, radio, and the newspaper. Media is a term can also be used as a collective noun for the press or news reporting agencies. In E-communication world, ?media? is also used as a collective noun, but refers to different types of data storage options. Misrepresentation Burchell & Milton (1999:581-584) define misrepresentation as an incorrect statement of fact or law made by one person to another. Though misrepresentation is usually made by words and is often made, by conduct alone, or by words and conduct. A fraudster may make a misrepresentation by nodding or shaking his head, using certain stationery, conducting business in a certain manner and disguising merchandise. Other forms of misrepresentation include silence, opinion, the law, and exaggeration. Misrepresentation is a communication strategy aimed at deception. Clarke (2009) states that the misrepresentation of the term must be distinguished from ?fraud,? must be dealt with. Misrepresentation deals with an innocent misstatement or nondisclosure of facts, while fraud represents information or actions are known to be false, or which are made in reckless ignorance of the truth or nondisclosure or concealment of facts under pretence. MySpace According to Answers.com (2010b) MySpace is a social networking service, allows its users to share messages, interests and photos with a growing body of friends online. Users are able to send emails, post videos, listen to music, and write blogs. The site also allows classified ads and posting of events. Blippr (2010b) states that MySpace is a leading worldwide social network that offers customisation of one?s profile and images on the World Wide Web. 43 Nonverbal Communication Williams (1992:395) states that nonverbal communication refers to meaningful sounds or patterns of voice, gestures, facial expressions, bodily postures, and even objects, symbols, or designs that go beyond the formal language system. According to Sternberg (1998:485) nonverbal communication is a subtle, yet powerful means of getting across a message. It also deals with grooming habits, body positioning in space, and consumer product design (example, clothing cues, food products, artificial colours and tastes, engineered scents, media images and computer-graphic displays). Nonverbal communication is an integral part of deceptive communication. Nonverbal communication which takes place through means other than the use of words, such as facial expression, gestures, body language, touching, spacing, systematic use of time, posture or general body movements. According to Forrest & Olson (1981:102) nonverbal messages deals with sharing emotions, feelings, and attitudes. Nonverbal communication and verbal communication is a part of one?s communication which occurs simultaneously. Organisational Communication According to Mersham & Skinner (1999:4) organisational communication refers to all forms of communication that takes place among members? organisations, either large or small and this is also referred to as internal communication. Organisational communication is the necessary communication that takes place to achieve that common purpose. This form of communication occurs in large co-operative networks and includes virtually all aspects of both interpersonal and group communication within the organisation. Organisation communication forms are as follows: keeping records, writing notices, participating in group discussions and completing in reports, to state a few (Mersham & Skinner, 1999). Positioning According to Drummond & Ensor (2005:222) there are huge amounts of product information which customers have to cope with. A customer evaluates a product and positions and uses this information to evaluate other products that are in the market. These perceptions are based on their key attributes. Du Plessis & Rousseau (2007:9) state that positioning refers to the perception of the product or service attributes in the mind of the customer. 44 According to Marketing Teacher Limited (2010) positioning is based on perception. Perception differs from person to person, so do the results of the positioning map example a consumer may perceive a product to be of quality, value for money, this may be different to some else?s perception. This may be the case however there will be some similarities. Products or services are organised by being ?mapped? together on a ?positioning map? which makes it easier to be compared and contrasted with one another (Marketing Teacher Limited, 2010). Public Relations Mersham et al. (1995:11) define public relations to be a deliberate and intentional part of an organisation?s policy. They further state that it is a conscious effort in providing information and creating goodwill, influence, gaining understanding and propagating the message to the audience. Skinner et al. (2010:4) define public relations as a management function that uses communication, of perceptions and developing strategic relationships between internal and external stakeholders of an organisation. Segmentation According to Doyle (2002:62) a market is made up of people who have similar needs. Although this maybe the case they are never homogenous. Doyle (2002) further states that a market group is a segment of customers within the market that has special characteristics which are significant for marketing strategy. Du Plessis & Rousseau (2007:9) state that segmentation plays an important part in customer analysis. Understanding the customer allows the marketer to identify the bases to be used for segmentation. Segmentation assists in the selecting of the target market in a more meaningfully manner. Doyle (2002) continues to state that in most markets the need for marketing segmented offerings is obvious since a single product will not satisfy all the customers. 45 Socially Responsible Investment According to Investopedia (2010) an investment that is considered socially responsible because of the nature of the business the company conducts. Common themes for socially responsible investments include avoiding investment in companies that produce or sell addictive substances (like alcohol, gambling and tobacco) and seeking out companies engaged in environmental sustainability and alternative energy/clean technology efforts. Socially responsible investments can be made in individual companies or through a socially conscious mutual fund or exchange-traded fund (ETF). Du Plessis & Rousseau (2007:13) state that social responsibility covers a diverse range of issues which also include the concept of consumerism in marketing. Small Group Communication According to Panse (2010) small group communication is communicating with a small group people. The group consists of at least three and a maximum of twelve to fifteen members. A group that has just two members or more than fifteen members would not categorise as a small group. A small group assembled may be a professional group, an educational group or a social group. The members of these groups have a common bond or interest or even goal that brings them together. Forest & Olson (1981:16) state that, the formation of a small group generally results in meaningful interaction among its members and this occurs because they have something in common. Social Influence Gass & Seiter (2003:127) reveal that families, peer groups, workplaces, even classrooms exert strong pressure which causes their members to behave in a certain way. Groups are a powerful persuasive force in social influence. Gass & Seiter (2003:130) explain that we have a desire to be right and we conform to a group because we think the group may be correct. At other times when we know that the group is wrong, we may conform so that we gain rewards (example, liking) and avoid punishment (example, scorn) that are associated with agreement and disagreement. This study will focus on social influence as a means of manipulation and persuasion. In chapter 4 this concept is further explained. 46 Store Brand Davis (1990:102) states that there is nothing new about a retailer?s own brand since the first products to be retailed were their own. According to Reference for Business (2010c) private labelling occurs when a retailer purchases products from various manufacturers and then markets those products under its own brand. These private labelled goods are often referred to as ?store brands? or ?no name brands?, this is opposite to the ?name brands? that are sold under the brand name of the manufacturer. For example, in South Africa Tiger Brands manufactures Pasta and sells it under the brand name, the supermarket chain Checkers purchases pasta from smaller manufacturer and sells it as a no name brand. Reference for Business (2010c) further mentions that private label products are usually less expensive than name brands; this is due to the reduced advertising expenditures. Social Marketing According to Harden & Heyman (2009:237) social marketing uses social networks or social media such as Facebook and MySpace, online forums and wikis to spread a marketing message. Social marketing is regarded to be the newest way to generate traffic to a website. Many are still unsure how to approach the social marketing ring and what the steps one in order to be effective (eHow.com, 2010). Social Media According to About.com (2010b) the best way to define social media is to break it down. Media is an instrument on communication, like a newspaper or a radio, so social media would be a social instrument of communication. Harden & Heyman (2009:237) state that sites converge by communicating with one another. Social Networking According to Nations (2010) the structure used for social networking allows users to express their individuality and meet other users with similar interests. This structure may include all or some to having profiles, friends, blog posts, widgets, and usually something unique to that particular social networking website has others may not have. For an example, the ability to ?poke? contacts on Facebook or to be able to high-five someone on Hi5. 47 Twitter According to Answers.com (2010c) Twitter is a free digital site providing a service that blends social networking with the ability to post short messages. These messages are limited to 140 characters or less and are commonly known as tweets. According to About.com (2010c) Twitter started as a micro-blogging service and grown to become much more than simple a tool to type in quick status update. Twitter is a combination of blogging and instant messaging. Twitter is regarded to be social messaging allowing on the ability to follow people and have others to follow you. Twitter is mobile and allows one the ability to interact with contacts on the cell phone making Twitter a perfect social messaging tool. This flexibility allows one who may be out of town to coordinate with a group of people and fining information where the hot spot is, or providing people with developments of an event, Twitter is an effective tool quick communication to a group of people. Trademarks Gylling & Lindberg-Repo (2006:264) state that brand identification is a set of brand associations, which the marketing is aiming to create and obtain. Perreault & McCarthy (1996:291) state that a trademark is a legal term which includes words, symbols, or marks that are legally registered for use by a single company. A trade mark need not be attached to the product. It does not necessarily have to be a word it can also be a symbol. Retailer About.com (2010a) states that a retailer sells goods or commodities in small quantities directly to consumers. Business Dictionary (2010a) states that retailers such as Wal-Mart are regarded as large businesses and also smaller, non-chain locations run independently such as family-run bookstores. Erdem et al. (2004:86) states that retailers sell their own store brands and control it exclusively, they also stock private labels. Store brands are gaining an increasing share of the market in most consumer product categories. 48 Verbal Communication Forrest & Olson (1981:102) state that a speech generally emphasises verbal aspects of transmitting and receiving messages. Verbal communication deals with the appropriate for transmitting knowledge. The basis of verbal communication is the interaction between people. Verbal communication is just one way for people to communicate face-to-face, utilizing key components of verbal communication such as sound, words, speaking and language (Sussman, 2010). Website Hover Web Design (2010) states that a website is referred to website or (www) site (often shortened to just site) is a collection of web pages, that is, HTML/XHTML documents accessible generally via HTTP on the Internet; all websites are publicly accessible in the World Wide Web. Word-Of-Mouth According to Du Plessis & Rousseau (2007:82) this is a process of word-of-mouth communication flow between opinion leaders and opinion followers. The key importance of the type of communication is the issue of whether the information is positive or negative. Blythe (2006:144) states that word of mouth concept is probably the most powerful communication medium that existence and can be utilised by marketers effectively. World Wide Web The World Wide Web (www) comprises of a system of Internet servers that communicate to another by binary code and Hyper Text Markup Language (HTML) which is linked to other documents, graphic, sound and video files (Webopedia, 2010). According to Mersham & Skinner (1999:193) the World Wide Web has emerged to become the most popular way for one to use the Internet. One can retrieve information from a webpage; by clicking on a word or image, using the mouse. Almost immediately, the one is linked to a computer that is somewhere in the world where the information is located. 49 Written Communication According to UNCG (2010) written communication is regarded as a clear expression of ideas in writing; which includes grammar and structure which results in providing information. Communication through words may be in writing or oral. Written communication deals with the transmission of messages in print media such as in diagrams, pictures, graphs. In order for the organisation to function correctly reports, policies, rules, orders, instructions, and agreements, have to be conveyed in written communication (Easy Communication, 2006). Viral Video According to Harden & Heyman (2009:238) web video content that gains widespread popularity through the process of being shared on the Internet, primary via video sharing sites like YouTube, but also via email and blogs. Harden & Heyman (2009:112) mention that web video is exploding and money is being invested in video search, video sharing, video advertising solutions and ways to measure all this activity. Viral Marketing According to Chen (2005:137) another method for Internet marketing makes use of community contacts, real or virtual, ?viral marketing? is a term coined by venture capital firm Draper Fisher Jurvetson. Chen (2005) further mentions that this describes the exponential growth of Internet companies resulting from customer referrals. Harden & Heyman (2009:234) state that marketing that utilises social networks to spread a marketing message or to build brand awareness, often by encouraging voluntary sharing of branded content. According to Vansickle (2010) viral marketing utilises the various Internet relationships that exist in order to promote products, people and events. This relies on people (users) telling their friends about things in order to create ?buzz?. Viral marketing is effective and inexpensive, and produce results that are priceless. Drummond & Ensor (2005:158) mention that viral marketing is a new concept and information is passed from one person to another just as a virus would. The process deals with a message being transferred from person to person. Word-of-mouth type of communication is enhanced by electronic (email, Internet) means (Drummond & Ensor, 2005). 50 Virtual Community According to Tech Target (2010b) a virtual group is a community of people sharing common interests, ideas, and feelings over the Internet or other collaborative networks. Mobileman (2010) states that it is a virtual community made up of people who have no contact with the real world. This is a cyber-conversation, through a technological system (Internet). Users engaging in discussions or by communicating or by having the same interests they share in the virtual world. CONCLUSION This chapter provided the various key concepts which are used in this study. It further outlined the concepts within the context of marketing and branding. The chapter also clarified certain concepts which are acceptable within the Communication Science domain such as the term ?publics?. This concept may not be acceptable by English purists but it is an acceptable term in the field of Public Relations. It refers to the target population. The following chapter provides a concise explanation on the influences consumer behaviour to purchase branded products from their stores. 51 C h a p t e r 3 CONSUMER BEHAVIOUR INTRODUCTION In chapter 2 the various key concepts were presented to assist the reader in the literature study. This chapter focuses on how the branded retailer influences consumer behaviour. The business arena relies on various stakeholders to ensure its existence and success. It requires an organisation that encompasses the following financial investments (Financial Capital), workforce (Human Capital), Consumer (Consumer Capital). Consumers play an important part to any business and in turn, business must ensure that it maintains its customer base. According to Cant et al. (2002:2) customers? behaviour will continue to play a decisive role in the way business organisations operate globally. It is customers who ultimately make the decision to purchase or use the product and therefore businesses must bare this in mind (Cant et al., 2002:2). Know This.com (2010a) states that purchases made by customers are done in order to satisfy their needs. Some of these basic needs are common to everyone on the planet (example food, shelter and water). To understand this more clearly these needs must be classified and wants or desires must be separated. Know This.com (2010a) continues to state that people in different countries share a high standard of living. A large portion of the population?s spending is focused on their wants and desires rather than on their important needs. Bloise (2009) states that consumers today have access to more information and choices than ever before. The results are higher expectations, and the brand?s message must captivate the consumer immediately. Companies seeking to experience long-term success will have to create the most compelling, relevant, and consistent brand experiences for their customers (Bloise, 2009). According to Delia (2008c) branding must be seen as a company?s own special way of creating a unique customer experience. This must start right from advertising, to point of first contact, through the sales process, to presentation of proposal, to fulfilment of customer needs, to the submission of an invoice, and beyond as after sales service. 52 Brand Consumer The term consumer is referred to people who purchase a product. This can be any item such as food, clothing, hardware, software and also service. According to Du Plessis & Rousseau (2007:72) a consumer is one who uses a product. For example, a parent might purchase breakfast cereal where the whole family can enjoy or a particular brand for the children. The child consumes the product and by refusing to eat anything else s/he can exert considerable influence on the parent to purchase a particular brand. Consumer power is a concept that is powerful since it is based on the consumer?s attitude and experiences of a product. Consumers can easily grow the brand or simple destroy it. Branded retailers are aware that consumers do have such power. Branded retailers have engaged in studying consumer behaviour in order to ensure the best possible way to satisfy their needs. According to Drummond & Ensor (2005:69) consumer behaviour relates to individuals who purchase products and services for personal consumption. Consumers buying patterns or behaviour deals with their decision making process, both individually and in groups. Organisations must ensure that they understand the importance of how people behave in purchasing items (Du Plessis & Rousseau, 2007:6). According to Mahony (2010) branding deals with influencing customers to perceive the brand in a certain favourable way. The perception created by the brand presents a solution or fulfils the wish of customers according to the expectations created by the brand. Brands may appear favourable to different customers in different ways but the underlying issue is that you want the brand to be recognised and remembered. This may be achieved through a logo; example logos such as Nike representing positivity ?Just do it?. According to Delia (2008b) a brand can be regarded as a claim of distinction and it can also be considered to be a company?s personality. Whether it is a product or service, we buy the brands we like the best, the ones whose personality best matches our own (Delia, 2008b). Hawkins et al. in Cant et al. (2002:2) states that the brand retailer must understand that consumers are individuals, groups, or organisations. These understanding deals with the process consumer?s use to select, secure, and dispose of products, service, experiences, or ideas to satisfy needs and it also impacts on the consumer and society. The decisions involve more the buyer and then the seller. The branded retailer must understand that the consumer 53 determines how they will spend their finances to purchase items from the retailer. Consumers are mind filled in the way they use their income (Cant et al.2002:2). Perreault & McCarthy (1996:215) state that economists assume that consumers are economic buyers. They further state that consumers are familiar with all the facts of the products and they logically compare choices in terms of the cost and value of the product. Sheth et al. in Cant et al.(2002:2) defines customer behaviour deals with their mental and physical activities within the household and business, customers that engage in these decision and actions in order to pay for products and service. Cant et al. (2002:2) state that this definition includes a variety of activities that people engage in and a number of roles played by them. Compliance Gaining According to Gass & Seiter (2003:236) compliance gaining generally deals with persuasion, which is aimed towards getting others to do some thing or to act in a certain way. Compliance gaining research deals primarily with behavioural change. Compliance gaining studies have concentrated on influence in interpersonal, face-to-face contexts rather than one to many contexts. Klopper in Rugbeer (2005:24) states that specific instances of communication can be used for compliance gaining continuum that advances from cooperation to competition to confrontation. Gass & Seiter (2003:244) state that regardless of the type of power that may be at work, one thing remains to be obvious: power affects compliance gaining behaviour. Belch & Belch (2001:58) state that consumers who are satisfied, generally results in the exchange of their money. 54 Figure 1 by Sheth et al. in Cant et al. (2002:2) illustrates the various aspects of customer behaviour, such as types of customers, customer role and their mental and physical activities: Customer types Roles Figure 1 : Customer Types, Roles and Behaviours Source: Cant et al. (2002:2) Types of Customers Cant et al. (2002:3) state that the distinguishing of the consumption between individuals in household and in business is important. A customer is seen as a person or an organisational unit who completes the transaction with the marketer or an entity. Customers may be part of a household or act as representative of a company. Cant et al. (2002:3) state that typically the term consumer has referred to household markets only. The corresponding term for the business market has been customer. The term customer is a common usage for example the branded retail stores such as Edgars, Woolworths and Game generally refers to their shoppers as ?customers? not ?consumers?. Utility companies such as Telkom and Eskom also refer to the people and organisations that use their services as ?customers? (Cant et al.2002:3). The Roles of Customers Du Plessis & Rousseau (2007:7) state that it is important to understand the roles that customers play. According to Cant et al. (2002:3) in order for any transaction to be completed in the marketplace, at least three customer activities are needed: ? Selecting or choosing a product; ? Paying for it; and ? Using or consuming it. Activities: ? Mental ? Physical Customers Business Payers Users Selectors 55 Further, Cant et al. (2002:3) state that the above implies that a customer can either be a selector of product, player or a user, or all three. The following is outlined: 1. User: is a person who actually consumes or uses the product or receives the benefits of the service. 2. The player is the person who actually finances or pays for the purchase, 3. The selector is the person who participates in the procurement of the product from the marketplace. Each of these roles may be carried out by one person or an organisational unit (example a department), or by different people or departments (Cant et al., 2002). According to King (2007) the old adage ?The customer is always right? has been the foundation of many organisations. What this really means is organisations ensure that they keep their customers happy. Many small businesses are able survive in a tough and competitive market because of their ability to provide personalised customer service. The element of the human touch makes an impact for the customer?s mind and goes towards establishing relationships. This relationship is used by the retailer as the basis of future growth for a business. Customers establish relationships with both the brand and the retailer. Anderson (2010) states that by gauging customers satisfaction is vital in the bid to retain existing customers, as well as attracting new ones possibly through recommendations made by existing satisfied customers. Focusing on this also enables managers to assess the development of the business as an on-going concern, and acts as a barometer to gauge its employee?s performance. Mental and Physical Activities Defining customer behaviour refers to both mental and physical activities, as reflected in figure 2. Cant et al. (2002:4) state that physical activities are actions that customers take by visiting a store, discussing the product with the salesperson, comparing information from brochures and buying the product. Mental activities deals with customers assess how well products will satisfy their needs, taking into account their knowledge of the brands, their previous experience with the products, and any other opinions or feelings they may have about these products. 56 The Importance of Customer Behaviour Schiffman & Kanuk in Cant et al. (2002:4) state that the study of consumer behaviour focuses on how individuals and businesses make decisions to spend their time, money, effort on consumption-related items is important. The study conducted by Schiffman & Kanuk in Cant et al. (2002) also deals with what they buy, why they buy it, when they buy it, where they buy it, how often they buy it, and how often they use it. According to Cant et al. (2002:4) businesses have become more aware and have recognised the importance to understand customer behaviour since it plays a vital role to their success. Organisations that learning how customers behave gain a better understanding why customers buy what they buy or, why they respond to marketing stimuli as they do. This kind of understanding provides the organisation with insight so that they can develop marketing communications example advertisements and brochures that are focused on the way customers react (Cant et al., 2002). Emotions and Brands Elliott & Percy (2007:20) state that emotion informs cogitative processing of which is often ignored by those who try to comprehend consumer behaviour. According to Lake (2009) a brand resides within the hearts and minds of customers, clients, and prospects. It is the sum total of their experiences and perceptions, some of which a retailer can influence, and some they cannot. Bradley & Lang in Elliott & Percy (2007:20) state that in order to understand emotion, we must take into account that emotions and feelings are not the same thing. According to Pettinelli (2009) feelings are more like sensations, touching something gives you a feeling. Further, Pettinelli (2009) mentions that feelings are therefore faster than emotions and thought, this is largely because there is a slight delay when you touch something and before you can think about something (thought), or feel something deeply about it (emotion). Elliott & Percy (2007:20) state that everyone experiences these feelings. Lake (2009) avers that in order to succeed in branding you must take the time to understand the needs and wants of your customers and prospects. Lake (2009) further states that this is done by integrating your brand strategies through your company at every point of public contact. Mann (2008:15) states that emotions are the way the mind encode things of value, and a brand that engages one emotionally. 57 FACTORS INFLUENCING CONSUMER BEHAVIOUR According to Cant et al. (1999:136) there are several factors that strongly influence the decision making process. Figure 2 illustrates the overview of consumer behaviour. Know This.com (2010c) states that an individual?s personality deals with perceiving of consumer?s personal characteristics that are consistently exhibited, especially when one acts in the presence of others. This.com (2010c) further mentions that in most cases the behaviour that one projects in a situation is similar to the behaviour of a person who exhibits in another situation. In this way personality is the sum of sensory experiences others get from experiencing a person?s behaviour (i.e., how one talks, reacts). Know This.com (2010c) further states that a consumer?s personality is often interpreted by the interacting with others, the person has their own vision of their personality which is called self-concept and this may or may not be the same has how others view. Figure 2: Overview of Consumer Behaviour Source: Cant et al. (1999:137) Figure 2 outlines three main categories with various sub-headings; in this chapter the researcher will outline some of these as well as including other categories that involve consumer behaviour. INDIVDUAL FACTORS ? Motivation ? Perception ? Learning ability ? Attitude ? Personality ? Lifestyle GROUP FACTORS ? The family ? Reference group ? Opinion leaders ? Social class ? Cultural group DECISION-MAKING PROCESS ? Awareness of a need or problem ? Gathering information ? Evaluation ? Decision-making ? Action (purchase) ? Post-purchase evaluation CHOICE OF A MARKET OFFERING 58 Individual Factors According to Cant et al. (1999) individual factors refer to factors inherent in human behaviour that will influence an individual?s behaviour as a consumer. Stanton et al. in Cant et al. (1999:138) state that buying motives can be grouped into three different levels, depending on the consumer?s awareness of them and their willingness to reveal them. The following three levels: ? Conscious need level: Consumers are willing to declare their motives and are willing to talk about them. ? Preconscious need level: Consumers are aware of the motives but will not reveal them to others. They maintain an understanding that it is personal. ? Unconscious need level: Consumers cannot explain the factors motivating their buying actions because they are unconscious or subconscious motivates. They purchase their goods without motivates. Motivation for Consumers Know This.com (2010d) states that consumer motivation relates to their desire of achieving a certain outcome. Many internal factors can impact on a customer?s desired outcome. There are other motivations that affect a consumer purchase decision example consumer?s financial position. According to Cant et al. (1999:138) the situation can become further complicated especially when a purchase occurs due to the consumer multiple motives, some of these motives can also be in conflict with one another. There are various needs that are taken into account before making a decision. Know This.com (2010d) states that motivation is closely tied to the concept of involvement and is related to how much effort the consumer will exert in making a decision. Highly motivated consumers will engage both mentally and physically in the purchase process. Know This.com (2010d) states that not all products have a high percentage of highly involved customers (example, milk) but marketers who market products and services that may lead to high level of consumer involvement should prepare options that will be attractive to this group. Marketers should make it easy for consumers to learn about their product (example, information on website, free video preview) and, for some products, customers should also be allowed to experience the product (example, free trial) before committing to the purchase (Know This.com, 2010d). 59 According to Cant et al. (1999:138) Maslow indicates the best known and also the most accepted theory of classifying the diversity of needs. Maslow classified human needs in a scheme in which the lower-level needs must first be satisfied, or partly satisfied, before the high-levels of needs can fully emerge. MASLOW?S HIERARCHY OF HUMAN NEEDS According to Envision Software (2010) the theory focuses on people who are motivated by their needs which remain unsatisfied, and that certain lower needs have to be satisfied in order for higher needs to be recognised as unfulfilled. Maslow deals with the following general categories of needs example (survival, physiological, love, safety, and esteem). Figure 3: Maslow?s Hierarchy of Human Needs Source: adapted from Boeree, (2006: http://webspace.ship.edu/cgboer/maslow.html) Forrest & Olson (1981:239) state that small groups enable individuals to gather so that they can bring fulfilment to needs that pertain to the social, psychological and physical areas of life. Cant et al. (1999:139) provides Maslow hierarchical order: ? Basic Physiological need: hunger, compels the consumer to purchase bread and milk. ? Safety needs: motivate the consumer to erect a security fence, take out insurance, and to be concerned about his/ her health. ? Social needs: underlie a host of purchasing decisions, from cosmetics to deodorants. ? Ego needs: cause the consumer to purchase luxury products as symbols of status and success, ? Self-actualisation: is the highest human need and has to do with personal development and individuality. It is unfortunately true that few people are in a 60 position to satisfy this need. Enrolling for the art classes is an example of an attempt to express individuality. According to Cant et al. (2002:123) each level of Maslow?s hierarchy has diverse priorities that exist in terms of product benefits that interests customers. Table 1 provides a useful framework for marketing strategies. Level of hierarchy Relevant products Examples Self-actualisation needs Hobbies, travel, education Appeal: ?Be all you can be? ?Amstel for the connoisseur? Ego needs Cars, furniture, credit cards, stores, county clubs, liquors Appeal: ?When it is time to be noticed, wear a Seiko quartz watch? Belonging needs Clothing, grooming products, dinks Appeal: ?You are part of the Pepsi generation? Safety needs Insurance, alarm systems, retirement investments Appeal: ?You are good hands with Perm? Physiological need Medicines, staple items, generics Appeal: ?It is the right thing to eat Quaker Oat Bran? Table 1: Maslow?s Hierarchy and Marketing Strategies Source: Cant et al. (2002:123) According to Cant et al. (2002:123) the above hierarchy provides a useful framework for marketers to use for segmentation and it assist with product position. Perception According to Cant et al. (1999:140) motives has the ability to activate behaviour intended to satisfy the aroused need. Since behaviour can take many forms, an individual gathers information from the environment to help in making a choice. According to Aberystwyth University (2008) some subtle cultural differences deals with some aspects of visual perception, it is also worth reminding ourselves that in terms of perception that we have in common with the rest of the human species than with the rest of the animal kingdom. Aberystwyth University (2008) further states that cultural differences and certain individual differences can affect ones visual perception. 61 Stanton in Cant et al. (1999:140) further mention that perception is known as the process of receiving, organising and assigning meaning to information or stimuli detected by ones five senses. It is the way that consumers interpret or give meaning to the world that surrounds them. Consumer?s perception of the quality of a product can be achieved by the feeling it or by just looking at the product. Stanton in Cant et al. (1999) states the following are the five senses: seeing, hearing, feeling, tasting and smelling. Learning Ability Cant et al. (1999:142) state that the consumer?s ability to learn also influences their behaviour. The consumer must, for example, learn which attributes relate to which brand and where it can be purchased. Consumers are able to recognise products by the package. Customers remember the various information that marketers communicated. The message is recalled when a consumer is ready to purchase the product. Attitude Cant et al. (1999:142) state that attitudes are a part of consumer value system, which represent personal standards of good and bad, right and wrong. According to Suh (2009) corporate and brand attitudes can be enhanced by marketers investing considerable amount of resources in providing information about their products and companies. With ample amount information about alternatives, consumers who have limited information processing abilities in purchase decisions tend to economise on cognitive resources by forming a subset of brands termed as consideration sets. GROUP FACTORS According to Perner (2008) consumer behaviour deals with the psychological processes that consumers go through in recognising their needs, finding ways to sort these needs, making purchase decisions (example, whether or not to purchase a product and, if so, which brand and where), interpret information which assist us in making plans. The implementation of these plans example, by engaging in comparison shopping or actually purchasing a product. 62 Figure 4 provides a clear indication of how consumer behaviour is influenced. Figure 4: Influences and consumer behaviour Perner (2008:http://www.consumerpsychologist.com/intro_Consumer_) Cultural Influence Culture provides a unique identity which influences a consumer. According to Du Plessis & Rousseau (2007:47) consumer decision-making is determined or is regarded as a key factor on cultural values and South Africa is regarded as a multicultural society. Blem et al. in Du Plessis & Rousseau (2007:47) state that culture is regarded as a set of learned beliefs, values, attitudes, habits, and forms of behaviour that are shared by a society and is transmitted from one generation to the next by members of society through language and symbols. Culture Values Rokeach in Du Plessis & Rousseau (2007:47) list the following two types of cultural values: 1. Terminal: examples would be a comfortable life, a world at peace, equality, freedom, happiness, salvation, self-respect, and wisdom. 2. Instrumental: examples would be prompt service, accurate information and free repair of defective products, convenient store location, and courteous and helpful salespeople. 63 Characteristics of Culture Values According to Assael in Du Plessis & Rousseau (2007:48) there are four characteristics that are common to all cultural values: 1. Cultural values are learned behaviour: the process of a person?s learning of the values of his or her own culture from childhood is known as enculturation. Learning the values of another culture is known as acculturation. This process is particularly noticeable in the new South Africa because of many communities that have been separated from one another in the past through apartheid laws now have the opportunity to learn from each other?s culture. 2. Cultural values are guidelines to behaviour: cultural values are passed down from one generation to another. They guide and direct an individual?s behaviour through the establishment of cultural norms. Public behaviour, such as courtesy, and polite eating and drinking habits, can differ from one culture to another. Cultural norms play an important role in society because individuals who deviate from them might be punished from their unacceptable behaviour. Cultural values are held mainly for deontological (right and wrong) reasons or for teleological or consequentialist (good or bad outcome) reasons. 3. Cultural values are both permanent and dynamic: cultural values gain permanence as parents pass them on to their children. Schools and the church also play roles in passing down such values as honesty, diligence, and morality. However, culture is also dynamic in the certain values change over time. Sometimes new values can be detrimental to the economic growth of the country, such as the feeling of entitlement as opposed to working for what one wants and needs, which can inhibit the rate of production. This is a cultural value which does not exist in the East. 4. Cultural values are socially shared: each culture has certain widely held and commonly accepted values that differentiated it from other cultures. For example, individuality and youthfulness are widely shared values in some countries, while conformity to the group and respect for the aged are commonly held values in others. Language plays an important role in facilitate the sharing of common values. In a multicultural and multilingual country such as South Africa, it is difficult to build a national culture, and doing so is a slow process. But diversity can contribute to the establishment of common cultural values, such as non-racialism, tolerance, understanding, religious open-mindedness, and social acceptance. 64 Cultural values in South Africa Du Plessis & Rousseau (2007:49) state that in 1994 South Africa underwent a major change and the country experienced for the first time a democratic election. This resulted in economic uncertainty which impacted on consumer spending patterns. In the years after the election consumer confidence was restored. Du Plessis & Rousseau (2007:49) further state that South Africa can be classified as a developing country which shows a contrast of first- world technology and ideas, and third-world roots and reality. The country?s population represents a multicultural, heterogeneous society, changes in values and lifestyles are an on- going process. Du Plessis & Rousseau (2007:49) state that in order to develop South Africa as unified in the true South African culture would be a slow process. One of reasons for this is that South Africans speak eleven different languages, and language is a major vehicle for transferring cultural heritage. However these 11 languages are regarded as official but within South Africa there are other languages which are not regarded as official for example languages used by the South African Indians. There is a large gap between Western European (Eurocentric) and African cultures (Afrocentric) (Du Plessis & Rousseau, 2007). Steyn in Du Plessis & Rousseau (2007:49) state that Eurocentric cultures tend to be task-oriented, while African cultures are more relationship-oriented. Mbigi & Maree in Du Plessis & Rousseau (2007) further state that Ubuntu is the main belief underlying concept of ?Afrocentricity?. This means that a person can only be a person through other people or I am because you are, you are because we are. The concept describes supportiveness, cooperation, and solidarity. A disadvantage of Ubuntu concept is that the group does not always recognise and support individual performance, achievement, or success. Du Plessis & Rousseau (2007:50) state that the South African context deals with privacy which relates to value and it is strengthened by the drive for security for property, vehicles and other possessions against crime. Materialism reflects the accumulation of wealth and objects. The achievement of this demonstrates personal comfort, of good life which symbolises success and status in society (Du Plessis & Rousseau, 2007). 65 Consumer Behaviour and Cultural Values According to Du Plessis & Rousseau (2007:53) many companies in South Africa, have adopted a policy of ?going with the flow?, which has forced them to introduce innovative strategies which are aimed at reaching consumers at the grass-roots. Du Plessis & Rousseau (2007:54) state that cultural values are receiving importance for recognition in professional selling. Schultz et al. (1999:591) state that salespeople often enter as strangers in the buyer?s environment. However to achieve their objectives, particularly in relationship sales contexts, these sellers must obtain the buyer?s ?culture intelligence? which goes beyond the knowledge of an outsider. Du Plessis & Rousseau (2007:53) state that cultural values are importance and should also receive prominent recognition in professional selling. Salespeople realise nowadays no customer is average, whether they are Edgars customers or a Pick ?n Pay shopper they are unique human being governed by emotions and personal values. There are various reasons why customers purchase brands. Some of their reasons maybe to fit in a particular society or they seek a brand that instils confidence within them. Social Class of Consumers According to Culnan in Jordaan & Jordaan (2004:139) consumers surrender a measure of their privacy in exchange for some economic or social benefit. Management-hub.com (2010) states that that social classes are made up of several characteristics: ? First, person within each social class tends to behave more alike than persons from two different social classes. ? Second, persons are perceived as occupying inferior or superior positions according to their social class. ? Third, a person?s social class is indicated by a number of variables, such as occupation, income, wealth, education, and value orientation, rather than by any single variable, fourth, individuals are able to move from one social class to another up or down during their lifetime. The extent of this mobility varies according to the rigidity of social stratification for a given society. 66 According to Drummond & Ensor (2005:70) the social class of an individual is important influence for consumer behaviour, with individuals in lower social groups generally being seen to be more culture-bound. A social class grouping depends heavily on a society?s cultural background. Social Influence Gass & Seiter (2003:127) reveal that families, peer groups, workplaces, even classrooms exert strong pressure on their members to behave in certain ways. Groups are a powerful persuasive force. Gass & Seiter (2003:130) explain that a consumer has a desire to be right and s/he conform to a group because s/he think the group may be correct and other times one may know that the group is wrong, s/he may conform so that s/he gain rewards (example, liking) and avoid punishment (example, scorn) that are associated with agreement and disagreement. Reference Groups Consumer behaviour is strongly influenced by groups that they belong to. According to Management-hub.com (2010) a person?s reference group are groups that have a direct (face- to-face) or indirect influence on the person?s attitudes or behaviour. Management-hub.com (2010) further states that a group having a direct influence on a person are called membership group. The person belongs and interacts with one another. Some of these groups are made up of members that have continuous interaction, such as family, friends, neighbours, and co- workers. Primary group tend to be informal. The person also belong to a secondary group, which tend to be more formal and where there is less continuous interaction: they include religious organizations, professional associations, and trade unions (Management-hub.com, 2010). Du Plessis & Rousseau (2007:70) state that reference groups also exert very important influences on children and adolescents in the formation of buying habits. For example, in a study of information search and media usage for confectionery products among black adolescents in Soweto, it was found that respondents gave preference to consumer-dominated or personal information sources, such as friends, parents, and siblings. Drummond & Ensor (2005:71) state that an individual?s attitude or behaviour is influenced by reference groups. Individuals purchasing behaviour is exhibited and is deemed to be acceptable by their 67 reference group. The norm of groups and the role an individual plays exerts considerable influence on the group behaviour. Buyers Culture According to Schultz et al. (1999:591) organisational culture is seen as a complex concept, which has been misunderstood and confused with climate, philosophy, ideology, style, and even management principles. Organisational culture is also defined as a pattern of shared values and beliefs that helps individuals to understand how an organisation functions. Your Business (2008:38) states that interviewing salespeople will assist in identifying which type of tools have been most instrumental in selling a company?s products and service. Sales tools include a variety of brochures, data sheets, white papers, comparison guides, PowerPoint presentations that plays a big role in making sales (Your Business, 2008). Family Influence Family play an important part in purchasing behaviour of consumers. Du Plessis & Rousseau (2007:71) state that the term family and household are used somewhat interchangeably to denote a basic spending unit. According to Drummond & Ensor (2005:71) the family makes up the key group and this is not only because it is a primary influence group, but individual purchasing behaviour is socialised within this group. Attitudes and beliefs in general and purchasing patterns for behaviour in particular learnt initially from the family where an individual is born and raised. Du Plessis & Rousseau (2007:72) state that in South Africa, the supermarkets and hypermarkets have become very popular and is a family matter. With extended hours and with a variety of departments with caters for the whole family. Decision Making Process Business Dictionary (2010b) states that a consumers use a process to identify their needs, collect information, evaluate alternatives, and make purchase decisions. These decisions are determined by their psychological and economic factors, and are also influenced by environmental such as cultural, group, and social values. Miletsky & Smith (2009:99) state that the emotional connection between consumers and brands differs from the emotional connection between, two lovers. Nauert (2009) states that consumer?s emotions influence their decisions about what, when and how they buy. Whether choosing between a movie and a play, deciding whether to attend a sporting event shortly before an important event or 68 selecting an indulgent breakfast treat in anticipation of a tough day at work. Consumers? choices are often guided by how they expect to feel making their purchase. Consumers Purchasing Decisions According to Hogarth-Scott (1999:668) manufactures have a weak control of in store marketing (as the consumer increasingly makes purchase decisions in-store). Marketers brand has to complete and smaller brands become vulnerable, and they have to respond to retailer supply chain demands that are tailored to retail outlets and different retailer efficient utilisation of supply chain. Consumer?s decisions are important especially in the area of purchasing a brand. According to Du Plessis & Rousseau (2007:137) that consumers without money or credit will not be able to purchase products or services regardless of what the retailer does. The economic environment has a major impact on consumer behaviour on how they spend. Consumers will purchase goods that will present them with a value. Brand retailers provide their consumers with a variety of options which makes it easy for them to purchase. Some of these options deals with payment methods example cash, debit card and credit cards. According to Worthington (1994:30) the retailer?s first approach is to take a strategic decision how they would prefer to control the communication channel between themselves and their customers. The issue of plastic cards therefore can be used as payment mechanisms but also offer the potential of two-way flows of information between retailer and customer. In the second approach, the retailer decides to enter the payment system value chain, and by a variety of means seeking to gain part of the value created by the payment system supply process that enhancing margins. According to Know This.com (2010c) the consumer?s appealing to self-concept needs could expand the market to which the product is targeted. According to Du Plessis & Rousseau (2007:142) the demand schedule for a product is based on the quantity of a product that buyers choose to buy at different prices. Mudambi (2002:525) states that in highly competitive markets price and tangible attributes of products often differ only slightly. Companies seek to prevent their products from becoming commodities, and they differentiate themselves with service, with the company brand, and with brands at the product level. 69 Mohr & Fourie in Du Plessis & Rousseau (2007:144) speak about price elasticity of demand and provides the following: ? Substitutability: the availability of substitute is undoubtedly the most important determinant of a buyer?s reaction to a price change. The larger the number of substitutes and the closer the substitutes are to the real thing, the greater the price elasticity (sensitivity) of demand for such a product. In the case of oil, for example, there is hardly a substitute. ? The degree of complementarily of the product: this applies to goods that tend to be used jointly, for example hamburgers and French fries. Should the price of potatoes go up, buyers will still tend to order hamburgers with French fries, but the expensive fries would make them place the order less often. ? The type of want satisfied by the product: the demand for necessities such as basic foodstuffs tends to be less price-sensitive than the demand for luxury goods. An extreme example might be seen in the case of a buyer who is addicted to a drug and will tend not to be price-sensitive, and might even resort to criminality to obtain money to buy drug. Another example might be a medical prescription of insulin to treat diabetes. Status Branding According to Fournier in Rindell (2008:5) consumers tend to develop an emotional relationship with brands, which anchor their identity. Bunting (2001) states that consumers may be cynically manipulated, or do brands enrich one?s life. Many people may not enjoy the intrusiveness of brands, but the truth is that millions of people carry on buying more branded goods and working harder for brands than ever before, while the profits for these successful brands soar above the stock market averages (Bunting, 2001). Many consumers are influenced by brands and use brands as a means of social status, and they use this to either to fit into a certain grouping or simply displaying their wealth. Branded retailers are aware of such behaviour and they tend to exploit this. According to Bunting (2001) brands have become a powerful social force, having a unassailable position with customers. 70 Consumer Brand Relationship McEwen (2004) mentions that globally companies are concerned about retaining their customer segmentation and many have been taking steps to improve, monitor, the strength of their relationships with customers. Branded retailers must ensure that they engage consumers with genuine motives and not deceive them with catch items. Relationship establishment is vital for long term benefits. According to Scott (1999:668) relationship marketing is now becoming a central theme in many business disciples and marketplaces. Business have now recognising that their success may depends on developing relationships with others in (or outside) the marketplace. Development of relationships is a strategic for the branded retailer . Schultz et al. (1999:589) state that relationship selling focuses on mutual benefits which are sought by buyers and sellers within the context of a single exchange into a network of transactions which is facilitated by the buyer and seller intimacy. In order for salespersons of branded retailers to cultivate a good relationship with buyers (consumers) they must demonstrate competence and confidence in their dealing with customers. According to Randall & Randall (1990:81-82) the branded retailer reputation with other companies (or consumers) can be damaged by a poorly motivated, ineffective sales representative. This can be done in a relatively short space of time through poor product knowledge, not servicing the customer well, and alienating customers through poor communication selling techniques. Pricing Influence According to Venkatesan (2006:1760) the price distribution implies to sustain price differentiation even in the face of increased search efficiency. Consumers ultimately want a product that will provide them value for money, branded products therefore must be able to provide quality. According to Tyran & Huck (2006:193) a customer become a repeat customer when s/he is provided with the desired quality. The demand for such products increases its value and branded retailers must tread carefully when it comes to price adjustment to influence consumer behaviour. 71 According Dobney.com (2010) markets that have similar products, branding can largely effect on the price that customers are willing to pay. Brands therefore add value to a basic product or service. This enables the product or service to command a higher price, or higher market share than an unbranded equivalent. According to Keller & Richey (2006:78) a surest way to increase sales, a brand retailer should reduce the price from time-to-time. However the brand retailer must also beware of the perception that can be created since price reductions may lead to consumer to feel that the brand is ?discount? or ?cheap,? which would reduce brand strength. Gijsbrechts (1993:115) states that consumer?s behaviour towards prices serves as a basis for the evaluation of the strategies for pricing. These strategies are price promotion strategies, multiproduct pricing, and dynamic and new product pricing. Consumers will support the brand since they are receiving product satisfaction but it is also important that branded retailers keep pricing not too high. Du Plessis & Rousseau (2007:152) state that the psychological pricing for consumers is based on their sensitivities for certain price points. Examples are price polices which focus on odd-even pricing (such as R6, 99 or R9, 95) or multiple pricing (such as four items for 99c, instead of 25c each). Both examples suggest a cheaper price or small saving. Du Plessis & Rousseau (2007) further mentions that price sensitivity occurs more frequently among senior citizens, single people, less-educated people, and low income and blue-collar workers. Higher-income groups often possess the best information regarding comparative prices and bargains. According to Small Business Notes (2010) important business decision that deals with the pricing of a product or service. Branded retailers must offer products priced that are based within their target market. Consumers must be willing to pay and in turn produces a profit for your company. Small Business Notes (2010) further states that there are many approaches to pricing, some may be scientific, some not and the framework for making pricing decisions that take into account such as costs, the effects of competition and the customer?s perception of value. According to Tyran & Huck (2006:191) good quality is costly and when firms tend to provide poor quality and consumers are reluctant to purchase. 72 Customer Satisfaction from the Branded Retailer Reiner (2004:382) states that customer satisfaction is measured internally and externally by the customer. Each process is the direct relation between customer satisfaction and performance measures which serves as indicators. Reiner (2004) further mentions that a company can adopt either an offensive or a defensive marketing strategy. The offensive strategy aims at winning new customers and the defensive strategy at keeping customers. Customers can be kept via switching barriers. Another possibility to retain customers is to enhance customer satisfaction and, thus, to increase customer loyalty (Reiner, 2004). Increased competition (whether for-profit or non-profit) forces a businesses to pay much more attention to satisfying customers (Free Management Library, 2010b). According to Krishnamurthi & Ramji (2007a) brand judgments can be seen as fairly logical and the brand feelings are regarded as consumers? emotional responses to the brand. Keller in Krishnamurthi & Ramji (2007a) identifies six brand-building feelings which are regarded has important emotions that a consumer have towards a brand, namely warmth, fun, excitement, security, social approval and self-respect. Bolton in Saunders (2010:25) states that customers? rate an organisation?s service at various stages of the relationship. Bolton?s results indicated that a customer?s ratings of the service provider obtained prior to a decision to cancel or stay loyal to the service organisation were positively related to the length of the relationship (Saunders, 2010). According to Drummond & Ensor (2005:8) the fulfilment of customer satisfaction is the key to the success of business. Krishnamurthi & Ramji (2007b) state that marketers talk about the nature of a service to be: ? Inseparable - from the point where it is consumed, and from the provider of the service. For example, you cannot take a live theatre performance home to consume it (a DVD of the same performance would be a product, not a service). ? Intangible - and cannot have a real, physical presence as does a product. For example, motor insurance may have a certificate, but the financial service itself cannot be touched i.e. it is intangible. ? Perishable - in that once it has occurred it cannot be repeated in exactly the same way. For example, once a 100 metres Olympic final has been run, there will be no other for 4 more years, and even then it will be staged in a different place with many different finalists. 73 ? Variability- since the human involvement of service provision means that no two services will be completely identical. For example, returning to the same garage time and time again for a service on your car might see different levels of customer satisfaction, or speediness of work. ? Right of ownership - is not taken to the service, since you merely experience it. For example, an engineer may service your air-conditioning, but you do not own the service, the engineer or his equipment. You cannot sell it on once it has been consumed, and do not take ownership of it. Customer Loyalty Copeland (1923) in East et al. (2008:28) states that brand loyalty as ?brand insistence?, this occurs when a consumer refuses to substitute one brand for another. Cant et al. (2002:218) states that branding is seen as a form of security that contributes towards the profitability to the overall marketing effort. Copeland in East et al. (2008:28) mention that consumers often purchase more than one brand in a category and marketers are well aware on the needs of customers and as illustrated in Maslow?s hierarchy and use this as a marketing strategy. Marketers aim to satisfy the needs, wants and desires of customers. Cant et al. (2002:123) aver that specific products satisfy a customer?s basic needs; well-positioned brands fulfil customers? deeper needs, wants and urges. Ind (2003:3) states that buyers have the power; however they are also swayed by their own needs and desires. This is both functional and emotionally determined and can be met by the purchasing relevant products. Ind (2003:4) states that customers are willing to pay extra to the organisation because of the perception that it adds value. Customers purchase these products of the trust and authenticity of these brands. Customers go by their past experience of using a product and continue in hope that they will get the same satisfaction as the last time. If the brand is trustworthy it will reduce anxiety, doubt and makes decision making easier and safer (Ind, 2003:3). According to Hart & Murphy (1998:3) brands can be enduring assets as long as they maintain their good shape and continue to offer consumers the values they require. Hart & Murphy (1998:4) state that brand owners must make certain that their product qualities and value are maintained. They have ensured that their brand appeals to their consumers and to continue to develop in order to maintain their attractiveness in changing society. According to Reichheld & Teal (1996:3) customer rendition is a subject that simply confined within narrow limits and business loyalty has three dimensions: customer loyalty, 74 employee loyalty, investor loyalty. Loyalty has implications that extend into various corners of business system that to benefit the steady customer. CONCLUSION This chapter focused on the influences of consumer behaviour in relational to branded retailers. Consumers are vital for marketers, this allows them to maintain and expanding the right segmentation. Customer satisfaction must be high on the agenda of the branded retailer. If this is successfully achieved then customers will remain loyal. Customer relationships are an essential part of ensuring that customers are made to feel important. Another influencing factor is the pricing. Branded retailers must ensure that pricing is in accordance with their advertisements. The next chapter outlines the importance of the brand development and how it is used for customer retention. 75 C h a p t e r 4 BRAND DEVELOPMENT INTRODUCTION The previous chapter provided information that dealt with how branded retailers influence consumer behaviour. This chapter surveys how brands are developed and how it becomes influential over time. According to Perreault & McCarthy (1996:291) consumers tend to take brands for granted since they see them so often. Brands are important to their owner. Perreault & McCarthy (1996:292) further state that branding started during the middle ages. Craft guilds and merchant guilds were formed to control quantity and quality of production. According to Delgado-Ballester & Munuera-Alema?n (2005:187) a goal for many organisations is to build a strong brand in the market. This will provide a host of benefits to a firm, including less vulnerability to competitive marketing actions, larger margins and greater intermediary co-operation and support and brand extension opportunities. Delgado-Ballester & Munuera-Alema?n (2005) looks at brand building and what actually makes a brand strong? This has been a significant and on-going theme in the branding literature for the past two decades. Perreault & McCarthy (1996:291) state that goods had to be marked by the manufacture to indicate ownership and also assisted to control output. According to Hart & Murphy (1998:1) brand usage has been developed considerably, especially in the last century. According to Ford (2005:1) the way one relates to branding have changed in the mid twentieth century brand management looked at marketing as doing things to people. People were seen as collective rather than an individual and the emphasis was on the marketing of the brand. Choices are made by the brand manager and not by the customer (Ford, 2005). According to Hart & Murphy (1998:1) the quality of a brand provides the consumers to make a choice between brands which have become increasingly subtle and, at times, fickle. When looking at these brands there is hardly any difference and yet one out sells the other. 76 WHAT IS BRANDING According to Bengtsson & Servais (2005:707) brands are representations which refer to elements such as product brand names, corporate brand names, product designs, and logotypes that have established a connection to the brand over time. Hart & Murphy (1998:2) state that branding consists of imposing one?s will on the consumer. Perreault & McCarthy (1996:291) state that branding refers to the use of a name, term, symbol, or design which helps to identify a product. A brand name relates to a word, letter, or may even deal with a group of words. According to Doyle (2002:157) brands are at the heart of marketing and business strategy. According to Webster in Chiou et al. (2010:434) brands offer retailers many benefits including established consumer demand, favourable consumer attitudes toward the branded products. A manufacturer?s commitment is to promote the product and the credibility and image of the brand itself as enhancements of the retailer?s credibility and image. Doyle (2002) further states that a company engages in marketing to create a preference for their brand. Customers perceive one brand as superior and are willing to pay more for it. Hart & Murphy (1998:1) state that a brand distinguishes the goods of one manufacturer from another and thus allowing the consumer freedom of choice is unaltered. According to Branding Strategy Insider (2008) a brand was a sign of production. It was a mark burned onto cattle by Vikings - brand means to mark or burn in Old Norse. Inception brands were a sign that a product had been made by a certain person in a certain place and with certain ingredients. Only recently due to consumer culture the ?brand? became a consumer word. Miller & Muir (2004:5) mention that brands exist in the minds of consumer, employees, suppliers, and others stakeholders. According to Yudkin (2009) branding is the process of creating distinctive and durable perceptions in the minds of consumers. Yudkin (2009) further states that a brand is referred to a persistent, unique business identity intertwined with associations of personality, quality, origin, liking and more. Ind (2003:3) states that a brand is owned by buyers and other stakeholders. Ind (2003:3) further states that it is the buyer who has the power to begin, sustain or terminate a relationship with the brand. The customer can only measure the value of a brand. 77 BRAND EQUITY DEVELOPMENT According to Davis et al. (2008:220) when customers are aware of the brand and tend to associate some favourable, strong, and unique attributes with the brand?s image which generates customer-based brand equity. Koll & Von Wallpach (2009:338) state that conceptualisation of brand equity implies that it is a multifaceted construct that consists of both brand knowledge characteristics (i.e. content and properties of brand knowledge) and customer brand response is defined in terms of attitudes and behaviours. Doyle & Stern (2006:163) aver that brands are regarded as the heart of marketing and business strategy. Drummond & Ensor (2005:228) state that an organisation should ensure that they strive for brand equity which provides the consumer with value. This will result in either the consumer will show greater loyalty or being able to pay a premium price. Aaker (2001:165) mentions that brand equity is a set of assets and liabilities that is linked to a brand?s name and a symbol that either adds or subtracts from the value provided by a product or service. Perreault & McCarthy (1996:295) state that the value of a brand?s overall strength in the market is based on brand equity. This is likely to be higher if many satisfied customers insist on buying the brand and if retailers are eager to stock it. Figure 5 clearly illustrates this: Figure 5: Brand Equity Source: Strategic Market Management, Aaker (2001:166) BRAND EQUITY Brand Loyalty Brand Associations Perceived Quality Brand Awareness 78 Aaker (2001:166) unpacks figure 5: ? Brand Awareness: can be a key to a strategic asset which can provide a variety of competitive advantages. Firstly, brand awareness provides a sense of familiarity since people are attracted to the familiar. Low-involvement products, such as soap or chewing gum, familiarity can encourage buying decision. Secondly, name awareness speaks about presence, commitment, and substance, attributes that can be very important even to industrial buyers of durables. The logic is that if name is recognised, there must be a reason. Further, Aaker (2001) states that logic is a large part of the successful efforts to brand components such as NutraSweet and Intel. ? Brand Associations: associations that are attached to a firm and its brands can be a key asset to the business. A brand association is anything that is directly or indirectly linked in the consumer?s memory. Thus, Mc Donald?s could be linked to Ronald Mc Donald, Kids, the Golden Arches, having fun, fast service, family outings, or Big Macs. Having these associations makes Mc Donald?s interesting, memorable, and appealing to its customers. Products attributes and customer benefits are the associations that have obvious relevance because they provide a reason to buy and thus a basis for brand loyalty. ? Brand Loyalty: customer orientation will lead to a concern for existing customers and programmes to generate brand loyalty. A prime enduring asset for some business is the loyalty of the installed customer base. Competitors may duplicate or surpass a product or a service, but they still face the task of making customers switch brands. Brand loyalty, or resistance to switching can be based on a simple habit (there is no motivation to change from the familiar gas station or supermarket), preference (there is genuine liking of the brand of cake mix or its symbol, perhaps based on use of experience over a long time period), or switching costs. ? Perceived Quality: Aaker (2001:161) presents the following six questions: 1) Performance. What are the specifications? How well the task is performed? Does the lawn mower cut grass well? Does the bank handle transactions with speed and accuracy? 2) Conformance to specification. Does the product or service perform reliably and provide customer satisfaction? 3) Features. Does the airline offer the latest movie technology and extraordinary upgrade capability? 4) Customer support. Does the firm support the customer with caring, competent people and an efficient system? 79 5) Process quality. Is the process of buying and using the product or service pleasant, rather than frustrating and disappointing? 6) Aesthetic design. Does the design add pleasure to the experience of buying and using the product or service? According to Dobney.com (2010) brand equity is used to describe the value of the brand and the brand?s component values. The brands value may be a monetary one (which may be discounted to a net present value), an increase in a rate of return or any number of softer market research measures such as awareness or consideration. According to Doyle & Stern (2006:163) developing brand equity is a main issue for a company?s top management because it is a key determinant of corporate value. Perreault & McCarthy (1996:292) state that today brands are been used mainly for identification. Brands that are well recognized make shopping easier for the consumers (Perreault & McCarthy 1996). According to Drummond & Ensor (2005:228) there is a strong association attached to brands that contain high equity. Perreault & McCarthy (1996) state that consumers tend to try new products, however if they are not satisfied they will revert to a tried and tested brand. Consumers who purchase products occasionally would rather purchase a well-known branded product since this will provide them with consumer confidence for quality. Brand development is vital and consumers must be assured that the product is of high quality. Brand awareness plays an important part in providing the consumer with information for decision making. Drummond & Ensor (2005:231) state that in order for brand development to be successful it will rely more than creating a strong image through the marketing communications mix. Drummond & Ensor (2005) further state that the consumer is aware that less visible elements are crucial ingredients that contribute in creating a strong brand. Perreault & McCarthy (1996:292) state that brand promotion has advantages for branders as well as customers. A good brand assists the consumer to save time in the shopping experience and to the marketer; it reduces selling time and effort. According to Poggenpoel (2008:82) retail deals with supply and demand i.e. how the supply of products or services are able to cope with demand in the most efficient and cost effective way to make a profit. One must be able to understand the market, the market players and those who need the market segment one should be targeting. Poggenpoel (2008) further states that by finding this out will reveal 80 which market segment you should be targeting, which retailers to collaborate with and which products or services is the common denominator. Doyle (2002:157) states that successful brands are able to create wealth by attracting and retain customers. He further states that when a company creates this type of customer preference and loyalty which builds a strong market share maintain a good strong price levels and generate strong cash flows (Doyle, 2002). Moran in Elliott and Percy (2007:82) state that brand equity is any given brand name has particular meaning and value to its consumers and to its direct customers. The brands distributive trade affects the future earning potential of the product or products which are sold under the name. According to Doyle (2002:158) brand awareness can be created by the developing of striking presentations, this requires sufficient amount of monies to be spent on advertisements and promotions. A successful brand is a product that meets the functional requirements of consumer?s psychological needs. These values provide the consumer the feeling of confidence that the brand is of a higher quality or it is more desirable than products from competitors (Doyle, 2002). Mersham & Skinner (2001a:200) state that there has been a considerable debate on how brands and branding are affected by digital media. The new world comes with almost infinite communication possibilities and information overload, strong brand image is one way of getting a message across to consumers. The Internet provided smaller companies to achieve global brand recognition in shorter pace of time. Mersham & Skinner (2001a) continue to state that clever advertising will not suffice to protect giant companies since the Internet changed the rules in the brand game. Instead of creative teams within agencies developing promotions to persuade consumers that they are getting a good deal ordinary people are able to compare information and prices for themselves and arrive to an informed decision whether they are getting the best deal (Mersham & Skinner, 2001a). 81 BRAND BUILDING The branded retailer must ensure that the brand is not superficial but will be able to enhance customer satisfaction. Doyle & Stern (2006:172), state that a brand image can be thought of as being developed in four layers: ? A quality product: satisfactory experience in the use is the major way in which brand values are acquired; having a quality product is the foundation upon which all other brand associations are built. New products are unlikely to succeed unless they score better than existing competitors in blind products-use-test. Since it takes time to build values of trust and confidence, existing brands in the market always have an advantage unless the new product offers demonstrably superior performance. If existing brands are not updated as superior technology and features become available, they will become obsolete. ? The basic brand: the ?basics? of the brand are the core elements upon first differentiation and then the brand personalities are built. They are the essential marketing mix elements: products features such as choice of brand name, design, package, logo and colour; price points; communication, including advertising, selling and sales promotion; and channel decisions such as type of outlet and mode of distribution. ? The augmented brand: the basic delivers the core product to consumers in an attractive way. But successful companies seek the competitive edge by enlarging the core product way. Supplementary products and services that enhance the customer?s total purchasing and use experience. The company searches for ways to meet expectations beyond that are required or even expected by the buyer. It is at this augmented level of added values that much of today?s competition occurs. ? The potential brand: the final defensive ring to be built around the product is the potential brand as illustrated in figure 6. A brand achieves its potential when its added values are so great that the customers will not willingly accept substitutes even when the alternatives are substantially cheaper or more readily available. Here the psychological benefits ? confidence, esteem, total satisfaction ? make possible brand dominance, high profit margins and long-term brand loyalty. By these means such Coca-Cola, McKinsey, Kelloggs, Mars, Gillette and Nestle have maintained brand leadership for over 50 years. 82 Figure 6: What is a Brand? Source: Doyle (2002:168) adapted and reprinted by permission of Harvard Business Review from Theodore Levitt ?Marketing success through differentiation ? of anything?, January-February 1980 According Brandma (2010) brands require some inputs in creation and building which also deals with a few outputs that result from the process. Brandma (2010) further states that brand name, positioning and brand imagery like symbols and logos are the inputs that are required in the brand making process. According to Livingston (u.d.) there is a critical difference that exists between brand and user imagery. A brand?s personality tells a story about the product. A brands heritage deals with quality, flavour, status, effectiveness, attractiveness, service, value, when to use it, where to use it and how to use it. Potent brands are able to create rich pictures in the eye of the consumer. 1. Tangible product 2. Basic brand 3. Augmented brand 4. Potential brand Guarantees Service Delivery and installation Credit and terms Quality Features Pack Brand Name 83 Brandma (2010) states that brand imagery refers to visuals associated with the brand and will also include the mascot, the brand ambassador and any other element of the brand retailer creates visual imagery in the minds of the consumers. Brandma (2010) furthers states that it is the brand images that a consumer recalls since they have been exposed to the brand name and brand imagery. Thus, brand imagery influences brand image. Hart & Murphy (1998:9) state that the most appropriate and successful approach to the development of new brands is to identify new brands with some measure that has distinctiveness and also have consumer appeal. Brand DNA According to Ryan in Morgan (2009:22) DNA is often described as the building blocks of an organism, it enables various cells to develop and work corporately to form a fully functional body, and controls the characteristics of that unique, individual organism. Ryan in Morgan (2009) further mentions that an organisation in the same way needs to have a genetic code and companies need to study, understand and eventually leverage their DNA in their quest for viability. Biz Community (2009) states that globally businesses are now realising the value the brand as the DNA of the organisation, and for these companies it is paying off with bottom-line results. These success stories include top South African companies such as SAB and MTN. According to Nworah (2010) a number of companies, countries, regions, towns and organisations who understand the principles of brand DNA are more likely to eclipse those who do not, in terms of delivering value to shareholder investments, or in the ability to attract inwards and foreign direct investments (FDIs). Nworah (2010) states that a brand?s DNA deals with the following: distinctiveness, novelty and attributes, as compared to those of the competition. Nworah (2010) further states that countries like Nigeria must discover its unique national brand DNA and communicate the same to potential investors who may be attracted to South Africa as a potential investment country. Biz Community (2009) states that DNA is regarded as the blueprint of an organism. 84 Biz Community (2009) further states that the DNA enables various cells to develop and work together to form a functional body, which controls the characteristics of the unique, individual. The organisation like the branded retailer has to have a genetic code which the company should study, understand and eventually leverage their DNA in their quest for viability. It is about much more than just their products or mission statements (Biz Community, 2009). Morgan (2009:22) states that branding is often seen as a peripheral function when, in fact, the brand is an organisation?s most valuable asset. Interbrand Sampson in Morgan (2009) mentions that many organisations globally are realising the value of the brand as its DNA, contributes to the company?s bottom-line results. Brand Positioning According to Drummond & Ensor (2005:222) customers have huge amount of product information to deal with. Customers position product(s) mentally in relation to other products on the market which is based on their perceptions of the key attributes it contains. Du Plessis & Rousseau (2007:9) states that positioning refers to the perception of the product or service attributes in the mind of the customer. Ellioltt & Percy (2007:226) explains that some people tend to shop at ?better? stores when they can buy identical (brand name) products for much less at a discount store. This clearly demonstrates that price is not the most important aspect that contributes to their decision process. According to Marketing Teacher Limited (2010) brand positioning deals largely about ?perception?. Consumer perceptions differ from person to person, so do the results of the positioning map example what you perceive as quality, value for money, is different to another?s perception. However, there will be similarities. Products or services are ?mapped? together on a ?positioning map?. This allows them to be compared and contrasted with each other when the need arises (Ellioltt & Percy, 2007:228). 85 Brand Authenticity Increased counterfeiting that goes around leaves the consumer somewhat baffled to identify the genuine or the fake. Consumers become disorientated especial when they feel cheated. Consumers pay for brands and they expect to get value for money. According to Authentic Business (2005) people regard brands to be manipulative and potentially dishonest. Products with no logo are the way to go for the savvy consumer. Beverland (2005:460) states that making an assertion that a brand is ?authentic? probably will not be successful because of differing views on what such claims would mean ? for some it could indicate a real versus counterfeit brand, while for others it could mean something much deeper. Beverland (2005:461) states that consumers identify with certain attributes of authenticity. Consumers also remember the past, hand-crafted methods, respect for traditions, or cultural links, all of which down plays commercial motives. Beverland (2005) states that consumers select brands and the makeup of these attributes will depend on the shared histories of a community of consumers. This means that instead of attempting to play up the authentic origins of a brand directly, marketing efforts must take an indirect route, for example by becoming a member of a community. This can also be achieved by visibly and tangibly contributing towards the community?s wellbeing. Brand Salience According to Elliott & Percy (2007:110) brand salience is an idea goes beyond simple measures of brand awareness. Elliott & Percy (2007:154) state that brand salience is often regarded as the top-of-mind awareness. Gylling & Lindberg-Repo (2006:264) state that the recognition for brand relates to a consumer?s ability to confirm prior exposure for the brand is given as a cue. Elliott & Percy (2007:154) state that brand salience is often regarded as the top-of-mind awareness. Ehrenberg et al. in Elliott & Percy (2007) state that salience also includes how many people have it in their brand collection or in their consideration set, and maintain that it represents the ?size? of the brand in mind space of the consumers. 86 Delia (2008c) states that branding consists of all the activities that are initiated and consistently reinforce the brands unique claim: in marketing, advertising, internally, and throughout the entire customer experience. Branding includes the little things and big things you do to establish the company?s distinct presence. Elliott & Percy (2007:154) state that a number of people whom a brand maybe salient will differ greatly from brand-to-brand. It is salience that separates big brands from little brands an effect that is referred to as brand market dominance (Elliott & Percy, 2007). According to Beverland (2005:461) brands are commercial agents and brand managers ensure that they meet the needs of their target markets. BUILDING BRAND SALIENCE According to Ehrenberg et al. in Elliott & Percy (2007:154) brand salience is a consequence and is made up of many aspects of brand strategy. Salient brands have wider distribution, more shelf-space and display, more promotions, more advertising, more word-of-mouth and more media mentions. Cox (1970:55) states that shelve space are of the scarcest resources in a self-service store. Shelf-space allocation for many food manufacturers and supermarket retailers utilise decision rules that assume a positive relationship between the amount of shelf space given to a product and its sales. Elliott & Percy (2007:155) state that the way brand salience is built is critical. It must take into account the way in which the link between the category need and the brand must be salient, and this may be triggered either by recognising the package at the point-of-purchase. Elliott & Percy (2007) further state that the package triggers a need, and it is purchased. On the other hand, when a choice is made prior to purchase (example where to go for lunch) or at the point-of-purchase, but where packages are not visible (example when a waiter asks you what beer you would like), the brand must be recalled. Gylling & Lindberg-Repo (2006:264) state that the recognition for brand relates to a consumer?s ability to confirm prior exposure for the brand is given as a cue. Brand recall relates to the consumer?s ability to retrieve the brand from memory when the product category, a purchase situation or a usage situation as a cue. 87 Brand Life Hart & Murphy (1998:8) state that most brands in practical terms need to have no lifestyle at all. Major power brands as Kodak, Coca-Cola, Gillette, Schweppes and IBM have been with us for generations and are all still thriving and enormously successful. New brand development is exciting, important and existing successful brands so valuable. McCoy in North & Enslin (2004:151) state that brands are under constant pressure in today?s volatile and competitive markets. Mergers, acquisitions and major changes in the business environment continuous demand the management of the organisation?s brands. North & Enslin (2004) further state that brands whether it is product, service or corporate require constant evaluation and conscious transformation. According to Ohnemus (2009:160) branding is becoming more and more a question of survival since many companies face the global challenge to converge both quality standards and manufacturing costs. Brand Transparency Loubser (2008:9) states that transparency trend has taken the world by storm. She further states that that the young generation want nothing but the truth. Young people are engaged with social media networks (SNS) and they either praise and brand or added to its death through spreading the message. According to Loubser (2008) young consumers exercise there have the power through blogs, social networks and access to user-generated sites such as YouTube, to instantly access information, expose brands, and in turn make or break them. Loubser (2008:9) continues to mention that the power of brand stories in providing young consumers with status among friends is certainly also a key driver in the need for brands to lay it all on the line. Gone are the days when just wearing the brand guaranteed credibility among peer groups. Co-Branding According to Erevelles et al. (2008:940) co-branding is the strategy that deals with the presenting of two or more independent brands jointly on the same product or service. Pasternak, (2009) further states that other vendors can see value in your brand and look to establish partnerships with your business, while investors will see the business and your brand equity as a valuable commodity. A very outstanding example will the company coco-cola which has a super brand ?Coke? and many company?s such as Kentucky Fried Chicken (KFC) markets its menu?s with Coke from time-to-time. Erevelles et al. (2008:941) states that co- 88 branding relationships are commonly categorised into four major types: ingredient co-branding, composite/complementary co-branding, licensed co-branding, and umbrella co-branding, the B2B relationship between the manufacture?s offering. Hurwitz in Dahlstrom (2004:2) states that co-branding provides several advantages to retailers. Dahlstrom (2004:2) further mentions that each new location contributes to brand awareness and contributes to promotional budgets. Co-branding also enables local retailers to increase store revenues for retail sites in mature markets. Chang (2008:498) states that co-branding is a strategy to develop a brand alliance. In the marketing literature co-branding has been used interchangeably that deals with labels such as brand alliance and composite branding. Sheinin & Schmitt in Chen & Liu (2004:26) state that brand extension strategy comes in two primary forms: horizontal and vertical. In a horizontal brand extension situation, an existing brand name is applied to a new product introduction in either a related product class or in a product category completely new to the firm. Drummond & Ensor (2005:238) state that there are times where an organisation will try to extend the use of a brand name to new products in the same broad market. Brands that carry high brand equity are candidates for brand extensions which as the ability to increase the attractiveness of the new products. Brand revitalisation can also brand extensions assist fading brands. Companies also tend to rethink or re-position their brands so that they can maximise this process to reach their targeted audiences (Drummond & Ensor, 2005). Brand Dominance Branding Strategy Insider (2009) states that brands in today?s globalised world quickly adopt to local demands in order to gain customer acceptance, being a local brand seems like waging a losing battle. Brand dominance is focused in making an impact in the lives of consumers. The 1990s were regarded as a golden era for both brands and the United States. It was the Clinton era for US citizens and the greatest decade in a golden century of unparalleled fiscal growth (Branding Strategy Insider, 2009). This decade saw the revitalisation of Coca-Cola brand. Microsoft the software company introduced their Windows operating system which became global branding of marvel. This decade also revealed Intel Company pulling off the branding revolution of the century by turning the old microprocessors into the key component brand in one of the most lucrative markets (Branding Strategy Insider, 2009). 89 Brand Returns Brand development contributes to the growth business and brings a return of investment (ROI). It must also be noted that enhancement of the company image attracts the target audience and brings about a long term ROI (Delia, 2008a). Miletsky and Smith (2009:206) state that brand campaign cannot be measured and may not translate directly to ROI like one expects when evaluating direct marketing. For example: ? You can measure the impact of the campaign on brand attributes, consumer opinion, awareness/ recognition of the brand, and other non-ROI-specific analytics. ? If your company has invested in models to measure the brand effect, you can track this outcome. ? You can measure the marketing efforts, the marketing environment, and the cognitive factors like awareness, brand image, loyalty and customer satisfaction to judge whether branding campaign has caused a lift or sales through its halo effect. ? You can measure the number of media impressions generated by any Public Relations used in a branding campaign; these can be translated into equivalent media investment. According to Delia (2008a) the market environment branding has become more important than ever before especially in the arena of competition. The brand message that is being transmitted must be distinct within the eyes of your target market; this will indeed make you standout which results in capturing their attention and lead ROI. Miletsky & Smith (2009:207) state that brand campaign does not necessarily meant to generate sales-at least, not directly. Campaigns are meant to penetrate the minds of the market and keep the audience constantly aware of the brand so that its promise and personality are increasingly recognisable and they instantly understand what to expect from the brand. A brand campaign is to generate awareness, based on increase (Miletsky & Smith, 2009). Brand Identity Brand identity is about a host of things that contribute towards making the brand stand out. According to Temporal (2002) corporate identity deals with the visual aspects of the company?s presence. When companies undertake corporate identity exercises, they are usually modernising their visual image in terms of logo, design, and collaterals (Temporal, 2002). 90 Delia (2008d) states that a brand that celebrates its victories has a vibrant and interesting history that it readily shares with its customers. According to the Delia (2008d) people are absolutely crazy about brands. Customers actually wear the brand logo mark all over the place. They have bumper stickers, posters and memorabilia. The brand message is communicated in a variety of very creative ways (Delia, 2008d). Kapferer in Blythe (2006:148) state that corporate brands are defined by five variables. These are: 1. Physique ? the physical aspects of the brand. 2. Personality ? the traits which make up the corporate persona. 3. Culture ? the share beliefs and behaviours of the organisation. 4. Reflection ? the effect the corporate branding has on the organisation. 5. Self-image ? the view the corporation has of itself. The brand retailer understands its target audience and the core demographics exceptionally well, making sure they give customers exactly what they want. The brand stays true to its roots, but still finds ways to evolve and remain current. The brand enjoys a distinction from its competition since it is one-of-a-kind (Delia, 2008d). Tech Target (2010a) states that brands are usually protected by securing a trademark or service mark from an authorised agency, usually a government agency. Trademarks are also regarded as the name of brand. Figure 7: Recognized Trademarks and Symbols in the market 91 Figure 7 illustrates trademarks that are easily identified by the company?s publics of which they connect easily to the various brands that fall under them. Perreault & McCarthy (1996:293) state that good brands have the ability to improve the company?s image. Perreault & McCarthy (1996) provides the following conditions which are favourable to successful branding: 1. The product is easy to identify by brand or trademark. 2. The product quality is the best value for the price. And the quality is easy to maintain. 3. Dependable and widespread availability is possible. When customers start using a brand, they want to be able to continue using it. 4. The demand for the general product class is large. 5. The demand is strong enough so that the market price can be high enough to make the branding effort profitable. 6. There are economics of scale. If the branding is really successful, costs should drop and profits should increase. 7. Favourable shelf locations or display space in stores will help. This is something retailers can control when they brand their own products. Producers must use aggressive salespeople to get favourable positions. According to Perreault & McCarthy (1996) state that these conditions are generally less common in less-developed economics and this may be why efforts to build brands in less- developed nations often fail. Hart & Murphy (1998:1) avers that brands have developed significant ways over the years. The following three points: ? First, the legal systems recognise the value of brands to both the customers and the producers. Most countries have now recognised that the value of these brands is intellectual property. Trades marks, patents, designs, copyright are regarded as property and therefore confer rights on owners for such property. ? Secondly, branded goods have been extended successfully to embrace services and other less tangible types of offering. Providers of financial, retail or other services can now be generally treated as branded products, provided that they are distinguished from those of competitors. Service brands now generally are protected by the same statutory rights as product brands. ? Thirdly, which is perhaps most important, the way that branded products or services are distinguished from one another having increasingly embraced non-tangible factors, as well as such real factors as size, shape, make-up and price. The qualities of brand which customers have come to rely upon in making a choice between brands have become increasingly subtle and at times, inconsistent. 92 Further, Hart & Murphy (1998:1) state that the result of this development, due to financial; and marketing communities, brands do not just have consumer ?values?, but also financial value, a value that can be measured. Financial brand value can be measured by various techniques that have been developed. According to Brandma (2010) the term brand image refers to the express feeling that one gets when one comes across a particular brand reference or a brand symbol. It is one of the vital attributes of a brand as well as a measure of the impact of branding on the target audience. It is important to note that brand image concerns itself with only the target audience and how it perceives the brand and not the general population (Brandma, 2010). Brands can also be regarded as intellectual property. Anassutzi (2010) states that a company may use registered rights such as patents to earn royalty revenue by licensing such patented inventions to other companies that have the capacity to commercialise them. This can provide the branded retailer with income from invention or the inventions of employees of your company, without the need to invest in its commercialisation. Reichheld & Teal (1996:3-5) mention that the combined knowledge and experience of employees is regarded as intellectual capital. Slater in Kleindl (2003:141) avers that the ownership of a company?s knowledge, the results of ideas and creativity, and the symbols that represent products, companies or brands is regarded as intellectual capital. Slater in Kleindl (2003) further states that the ownership of intellectual capital is protected by copyrights, trademarks, legal notices, and patents. Intellectual capital is knowledge that can be exploited for some money-making or a useful purpose (SearchCRM, 2009). The term deals with ideas of the intellect or brain-power that has an economic concept of capital. Intellectual capital can also include the skills and knowledge that a company has developed about how to make its goods or services (SearchCRM, 2009). Reichheld & Teal (1996:5) state that most mangers do not realise how much loyalty human assets creates. Walsh et al. (2010:76) state that a brand element is regarded as a logo can be expressed as graphic representation or image that triggers memory associations of the target brand. 93 Employer Branding The branded retailer must be a responsible employer, one who ensures the brand not to just have popularity among consumers but also towards its employees. According to Martin et al. (2005:77) this is an increasingly important aspect for contribution towards sustaining corporate success is to build bridges with the marketing function and to form its literature and practice on branding. Martin et al. (2005) continues to state that corporate branding is a cornerstone for business strategy for companies. It serves as the single most important filter for assessing organisational change and key decisions, even in organisations that retain strong lines of business or product brands (Martin et al., 2005). Gylling & Lindberg-Repo (2006:258) state that corporate branding deals with the interaction of multiple stakeholders with employees of the organisation. The employer also needs to ensure that they recruit personal that understand that they are to add value to the brand, corporate brand or its identity. According to Martin et al. (2005:78) employers are led to think more closely about the connections between employee satisfaction and retention, hiring, customer satisfaction, branding performance and financial performance. The Economist in Elliott & Percy (2007:217) state that organisations that have a strong brand can attract and retain employees: the development of an ?employer brand? is increasingly seen as a winning strategy for managing and establishing all aspects of employee relationships. Ritson in Elliott & Percy (2007:217) further state that employee acquisition can reduce the costs and improve the relationship between employee and employer and extend the average length of employee retention. This allows companies to attract high-calibre staff at a lower salary than competitors with weaker employer brands. According to Rauch (2010) on-going internal discussions about the values and requirements of the brand is important. This kind of brand dialogue should be a standard management task. Ultimately it is the responsibility of the company?s leaders to determine the identity and values of the brand. Rauch (2010) further mentions that the some employees tend to leave the company because they are not able or willing to identify with the brand. When this happens it could be best for both parties. 94 The Employee and Brands According to Whelan et al. (2009:2) employees, are influenced by perceived customer orientation of the organisation which in turn makes them to be customer-oriented, as they respond to the policies of their employer. This concept also influences employee satisfaction, as employees in a service environment should be more satisfied when they feel supported by their employer?s attitude towards customers. Customers will be more satisfied if they perceive that the organisation is more oriented towards them; and their views of the policies of the organisation will influence their perceptions as to the orientation of the organisation?s employees. Lawrence (2008:46) mentions that a customer?s positive brand experience is largely reliant on employee behaviour and the extent to which they meet the expectations of customers during these critical interactions. Pasternak (2009) states that employees play an important part towards the brand, if they do not deliver the brand it could result in the loss of business and that can soon lead to death of the business. Lawrence (2008) further states that employee?s behaviour has a direct influence on the reputation of a brand and ultimately an effect on the overall success of the organisation. Employees who represent the brand flawlessly consistently can propel a business to prominence, (Pasternak, 2009). According to Rauch (2010) brands are powerful enough to change the world. This means they can also change the (smaller) world of each individual. Working for a brand can make those who work for a company proud, thereby enhancing personal satisfaction and improving social interaction. Employees intuitively become ?brand ambassadors? without ever having to learn a set of guidelines. Pasternak (2009) states that brand consistency throughout all levels of the organisation helps drive an organisation to grow and prosper by having strong brands that increase sales. This brings about a number of benefits such as attracting and retaining the best employees. Miletsky & Smith (2009:130) state that it is important for the employer to give employee?s guidelines that make sense in the industry and are fundamental to how they should treat any given customer. 95 According to Pasternak (2009) employees play a critical part in customer relations. Employees play an important in brand formation (Lawrence, 2008). No matter how ?pretty? the brand looks on the outside; it is the appeal on the inside that matters. A brand is built on reputation and because reputation is based upon one?s experience with the brand then, every encounter with the brand should be both positive and unforgettable, a lasting one. Pasternak (2009) provides the following five steps that ensure how employees can represent the brand in the best possible light: ? Develop a Company Philosophy: A thoughtfully planned philosophy that guides how your company operates is the first step to reinforcing your brand among your workforce. ? Maintain Brand Consistency: This step is essential to building a strong brand. However, it is often one of the first steps to unravel. You must establish consistency throughout all aspects of your organisation. But setting the standards is not enough. You must constantly evaluate your actions. Establish checkpoints for each aspect of the business that interacts with customers and the general public. Ensure that each employee is empowered to identify and address inconsistencies in your brand. Fail to deliver on brand with one customer, and s/he might forget. Fail to do so for another, and s/he might not be so forgiving. It only takes a scam to dispel the brand you are touting. ? Practice What You Preach: The best way to lead is by example. If your brand projects your organisation as one which supports its employees and then reneges on that promise, your brand (and sales) will suffer. Case in point: Wal-Mart. The company says, ?We believe that one of the keys to our success is our people and how we treat them.? However, the retail chain has been the subject of unfair employee wage practice lawsuits. Moreover, though they say they value their target customer (the hard working middle class) their actions are not necessarily consistent with the rhetoric. ? Implement Brand Guidelines: In order to ensure brand consistency, your organisation must establish a framework or set of brand guidelines for all to follow. We are not merely talking about logo or corporate identity guidelines, but actual brand guidelines that communicate the company?s brand positioning statement, key messages, core values, brand attributes, measures of success and processes for handling customer issues or feedback. Federal Express was an early pioneer in this idea. The international shipper utilises an Internet-based programme which outlines the company?s brand guidelines. This detailed approach provides guidance on everything from the graphic standards for use of the company logo to how cultural differences affect brand (particularly important for global companies). Establishing 96 brand guidelines leaves no room for misinterpretation and helps maintain consistency throughout all levels of the organisation. ? Understand and Address Cultural Differences: With advancements in technology, communications and the Internet, we are truly becoming a global economy. Considering cultural differences when building a brand is more important than ever, particularly if your business has international reach. Words and phrases in America might not translate to the same meaning in another country. What customers value and perceive as positive in the United States may be perceived radically different elsewhere. In the past, the United States was the model that all others wanted to emulate. That is not necessarily the case today. Therefore, it is incumbent on corporations to ensure that their brands can transcend these cultural differences, if they are to have a greater geographical reach. Pasternak (2009) further states that the brand extends well beyond a marketing effort. The brand is only as good as the people behind it and the people in front of your customer. Take the time to effectively build a corporate culture that mirrors the brand. Train employees to represent that brand. Evaluation of brands and its delivery across all aspects of the business must be consistent. In doing so, brand equity is strengthened and positions the company for greater success. According to Rauch (2010) brands have become meaningful to people over a period of time. It is for this reason that one should consider not only products and advertising, but remember the people who are used to manufacture and advertise these products. Rauch (2010) continues to state that, if a brand has no emotional attachment to the employees, then they will not be able interpret the brand?s emotional and social value towards the customer. Rauch (2010) further mention that this is especially true of service brands, since the value of which often becomes tangible through human interaction. According to Pasternak (2009) brand is not about your logo, tagline and glossy brochure alone but a strong brand integrates multiple components, all of them necessary, including customer interactions, employee communications, corporate philosophy and advertising/ marketing efforts. 97 BRAND ENGAGEMENT AND INTERNAL BRANDING Rauch (2010) states that brand create value and are known among decision makers in companies and organisations. Whereas brands originally served as an indication of the origin and quality of an offering, they now generate added emotional and social value for customers. Strong brands are not only socially relevant, they actually offer meaning to many people?s lives. Gylling & Lindberg-Repo (2006:262) state that the internal brand-building process is part of the core values which is linked to the mission, vision and organisational values. They also affect the brand architecture, product attributes, brand positioning and communications strategy. Miletsky & Smith (2009:130) state that employees must be knowledgeable about the brand all the time and to help to bring it into the internal brand community. According to Rauch (2010) companies must examine the behaviour, attitudes, and values of their employees from the perspective of branding. This means that the core values influence continuity, consistency and credibility in the building of a corporate brand and product brands (Gylling & Lindberg- Repo, 2006:262). Rauch (2010) continues to state that most internal branding programmes center around internal information about the brand identity. Rauch (2010) states that in order to become an authentic brand advocate employees must contribute towards the shape and development of the brand?s identity. Employees can achieve this through their daily tasks. This level of involvement transcends internal branding and becomes ?brand engagement? providing a true connection with the brand. This relationship is based on the principle of give and take. While it is true the brand demands something of employees, they in turn must get rewarded (Rauch, 2010). BRAND COUNTERFEITING According to Li (2009) counterfeiting is not limited to daily commodities such as clothes or shoes; but sometimes includes software, office consumables, and electric appliances. Counterfeit products exist in a variety of ways, including counterfeiting, bogus and inferior products, which has made it difficult for the public to differentiate between the real and counterfeit ones. Li (2009) further state that whether it is the counterfeit daily commodities of the past, or the counterfeit high-tech products seen today, it is all driven by the economic 98 benefits, which has helped with the ?cause? of the counterfeiters. According to Sybert (2008:12) counterfeiting brand-name products is commonly violated in China. According to Seeco (2007) youth likes to experiment with the use of brands. The understanding of popular brands and what they stand for or symbolises usually takes a few years to grasp. The immediate indicators to adopt are the styles, shapes and cuts of the brands. Seeco (2007) further states that youth will want such items and since the original may too costly it may create an opportunity for inferior products which are commonly referred to as ?Fong Kongs?. As long as products looks like the original All Star Converse sneakers or the Lacoste shirt then it is usable. As income improves so is the judgment by the local peers and pressure to buy the brands. At this point, the ability to distinguish between fakes and authentic labels is enhanced. Fairley (2008:20) states that globally brand owners are facing a key challenge of the rising advancements in counterfeiting and fake products. According to Li (2009) digital information and the development of global high technology has contributed to industry. This development has caused concerns and anxieties for people in the industry. Further, Li (2009) states that counterfeiters use high-tech measures to manufacture ?advanced? counterfeited products. South Africa hosted for the first time in Africa the FIFA World Cup 2010 and many top brands have embarked on investing large sum of capital to ensure its brand presence. Sports City (2010) states that fake World Cup souvenirs are costing FIFA?s official suppliers millions of dollars in lost sales. Items such as fake shirts, flags and other souvenirs are freely available on South Africa?s streets and sold by traders at street corners (Sports City, 2010). Stewart (2003:133) states that counterfeiting is one of the fastest growing industries globally. Stewart (2003) further states that counterfeiting to criminal elements of society focus on the high profit margins which are tax-free income, low overheads and far lower risks in terms of penalties or consequences than activities such as drug trafficking. Marketing campaigns for the FIFA World Cup has encouraged the nation to support their national soccer team Bafana Bafana by wearing the yellow and green soccer shirts. According to Sports City (2010) South Africans have been encouraged to buy national team shirts to wear on special ?Football Fridays? but many South Africans complain about the high cost of official Adidas shirts and this fake ones sold by hawkers more popular. 99 The International Authentication Association (IAA) in Sports City (2010) said in a statement that efforts to clamp down on counterfeit goods coming mainly from China and other Asian countries, such as fake jerseys and other merchandise for national teams will be costing bona fide suppliers millions of dollars in lost revenue. There is a major loss of income and this impacts the South African economy. In regards to the soccer World Cup, Sports City (2010) states that South African customs officials and police have found large stashes of fake goods at Johannesburg OR Tambo airport and elsewhere, including national team shirts worth ?1.7million. TYPES OF BRANDING According to Ind (2003:4) brands enhance our sense of well-being and freedom furthers our self-esteem. They can enhance our higher needs for esteem, socialisation and self- actualisation. They are people-centric brands that help us to obtain value. Brands can also disappoint and manipulate our beliefs and try to limit freedom of choice. Landa (2006:4) states that the market place of today is overcrowded with almost all brands are parity goods and service products that are equal in value. Fast Moving Consumer Goods (FMCG) Within the South African retail sector there many FMCG brands that are consumed on a daily basis and one such example is bread. The vast FMCG range basically compete with each other to secure their share in the South African market. According to Groenewald in Gillingham (2010:2) fast moving consumer goods (FMCG) is hyper-competitive and participants have to ensure that they remain at the forefront of innovation so that their business are sustainable. Gillingham (2010) states that some FMCG products have been in the market for decades and in order to sustain these brands they have to constantly use fresh ideas. Groenewald in Gillingham (2010) further mention that the FMCG industry uses a variety of approaches to ensure products remain relevant, some subtle and others dramatic and provocative. The progress of remaining relevant is based on how cleverly they advertise and market themselves. Any FMCG company that tries to push bad products on to what it perceives as a gullible public is going to get a wake-up call and find that its products lose traction in the marketplace. They are soon pushed out of the supermarket shelves by quality 100 products that deliver real value to consumers (Groenewald in Gillingham, 2010). South African consumers have their favourite FMCG brands which they have become accustomed to over the decades. Seeco (2007) states that food brands in the FMCG category, occupy a position of great relevance in the minds of the consumer since these brands are used by many on a daily basis example milk. Preferred maize brands, preferred tinned food brands and other items play a major role in lives of the consumer. Seeco (2007) continues to state while, among some market groups, no name brands would be preferred on the basis of price, among many rural and township markets it is important to be seen to be using Iwisa, Tastic, Lucky Star tinned fish and other brands. Using such brands adds to the status of the individual. An unknown brand is seen as ?cheapline? and people will only use it as a last resort. The ?trust? that the brand will deliver on its promise is central to people choosing to create enduring relationships with such brands. Corporate Brand The engagement of business-to-business is through a relational and trust context. The reputation of a business is developed over period of time and since it is placed from that perspective many attached trust to the corporate image. Da Silva & Sayed Alwi (2008:120) state that stakeholders purchase the company?s product they also believe that they are buying a set of values that is not only attached to the product but also of the company. Products that are manufactured by the company enjoys product placement due to the popularity of the company. According to Gylling & Lindberg-Repo (2006:257) business-to-business brands are often regarded as corporate brands. Gylling & Lindberg-Repo (2006) further state that corporate branding provides the strategic focus for a clear positioning; it facilitates greater consistency in communication programmes. It enables staff to understand better the type of organisation they work for, and it provides inspiration about desired styles of behaviour. Corporate branding is about multiple stakeholders interacting with the employees of the organisation Gylling & Lindberg-Repo, 2006). 101 A brand can easily become stagnated and soon end up as an un-used or forgotten brand. It is for this reason that brands are engaged corporately to ensure longevity. Gylling & Lindberg- Repo (2006:258) state that a brand that is conceived solely in terms of either an input or an output perspective, this can result in an unbalanced strategy and cause the brand to weaken with no chance for longevity. They further state that if one extreme is corporate branding with its values stretch across the diverse product group, which can be clearly seen among financial service brands, example AXA, Halifax and global brands such as Nokia, Virgin. According to Gylling & Lindberg-Repo (2006) brands with a unique name are not easily recognisable as being associated with a particular corporation or a company. Examples provided by them are Ariel washing powder and Fairy liquid washing detergent, both of which are manufactured by Procter & Gamble and this only becomes obvious when one closely examines the packaging. Most products that enjoy great success are often bought off by bigger conglomerates which seek to dominate market. Corporate brands are also targeted to be incorporated by these multi-national giants. In South Africa there are many examples similar to the above. Beacon Sweets and Albany for an example were stand-alone corporate brands that manufacture a variety of products of their own and these products enjoyed brand status. This as all changed since they were acquired by Tiger Brands ? Tiger Consumer Brands Limited which resulted in these corporate brands becoming product brands. According to Gylling & Lindberg-Repo (2006:258-259) although these positions may be extreme there are many brands that seek corporate endorsement. This is due to a variety of reasons such as to curtail the increasing costs of promoting individual brand lines. In order for corporate branding to be more visible, effective communication is to be used to its full potential. According to Rogers & Agarwala-Rogers (1976:7) communication is regarded to the lifeblood of an organisation. Da Silva & Sayed Alwi (2008:120) state that corporate branding is important and it is an intangible asset to the company. Thus, one can conclude that corporate branding is also the life blood of company/ organisation. 102 Dummies (2009) states that there are diverse brand types, brand types that work for different marketing approaches that your business might take. The following are a few general types of brands that your business could fall into: ? Product brands: Products (commodities) become branded when it wins awareness in the marketplace. This occurs since the product has the compelling characteristics that make it different and better than others in the product category. Branding is a powerful tool that differentiates the brand retailer?s offering in ways that create consumer preference and allows for a premium price. ? Service brands: People buy services purely based on their trust that the person or business they are buying from will deliver as promised. If the brand retailer sell a service or run a service business, they absolutely, positively need to develop and manage a strong, positive brand image. ? Business brands: brand retailer can brand the business, itself, in addition to or instead of branding the company?s products or services. ? Personal brands: Whether the brand retailer knows it or not, they have a personal brand. If people know the name or recognise face, they hold your brand image in their minds. ? Personality brands: Personality brands are personal brands gone big-time. They are individual brands that are so large and strong that they not only deliver wide-reaching personal celebrity but also create significant value when associated with products or services. Think Martha Stewart, Emeril Lagasse, or Oprah, and you are on the right track. Sure, these are all just people, but their names are associated with a superior quality and subject expertise that speaks to their personality branding. If you aspire to become a leader in your community or industry, keep that goal in mind as you build your personal brand. Develop a personal reputation that you can leverage into a greater good by becoming a small-scale personality brand in your own backyard or business arena. Consumer Brands Landa (2006:14) states that brands are applications that are focused towards consumers. This refers to the range of consumer products and service categories that include household goods, home electronics, automobiles, automotive services, computer hardware and software, food and beverages, beer wine and spirits, apparel, beauty aids and service, health products and services, over-the-counter and prescription medications, pet products, and sports team products, among many others. 103 According to Mullick-Kanwar (2011) today?s retail marketers are managing their proprietary brands with the same combination of care and innovation as manufacturers of national brands. Mullick-Kanwar (2011) continues mention that retailers continued to push more and more private label products into different categories of the marketplace. The private label brand represents high margins and the promise of profitability with little to no marketing effort example within South Africa is the Checkers group is one major retails promote their private label which is known as ?no name? brands. Digital Branding This concept deals with digital media that utilises on screen to form, launch, and strengthen relationships between a brand and the users. This application is web based and includes any digital format for CD-ROMs, kiosks and other electronic exhibit systems, interactive posters, intranet. Extranet, rich-media banners, software interfaces for mobile devices and networked appliances (Landa, 2006:16). Power Brands Hart & Murphy (1998:2) state that power brands are brands which have adapted to the environment and are able to survive and flourish. Brands like this reveal the organisation?s marketing skills. Power brands are goods or services, corporate names, product brand names and specific products or a range of products. They all share common areas such as being well priced, offer good and consistent quality to consumers (Hart & Murphy 1998:2). Global Brand Hart & Murphy (1998:211) state that branding has not reached the same stage of development in all parts of the world. Landa (2006:16) states that branding can also be designed for an international audience. A monolithic brand strategy deals with presenting the brand the same way in all markets. A diversified brand strategy adjusts and tailors the brand experience in order to consider cultural differences among its various global target audiences. There are many global brands such as Coke or Proudly South African. Global brands are brands that have international influence. Iconic brand can also be regarded as global brands since they celebrities people who international known. 104 According to Brown (2007) iconic brands inspire an enduring form of affection that any marketer would want for his brand. An example is Tiger Woods and the Nike brand. According to Landa (2006:16) branding and advertising for organisations, both national and international, includes medical research, humanitarian, social or environmental issues, political and non- profit organisations-anything that is in the public interest. A good example is Green Peace. Brand Environment Landa (2006:16) states that visual identity for brand environment is formulated, tailored, constructed, and applied to a three-dimensional physical space for a variety of environments and for a variety of purposes, includes education, entertain, endear, inspire, or promote. According to Swart (2008) strong home-grown brands are able to perform fairly but on the whole the international players dominate African markets. He further states that local brands can use the principle of provenance very effectively and this is the one thing they have, that the international counterparts can never achieve. Provenance is the feeling and emotion surrounding a home-grown product or service, the feeling of ?affinity? for a country that resides in every proud national?s heart (Swart 2008). Swart (2008) continues to state that a brand can not only rely on provenance to generate success, technology and service delivery is regarded to be very important driving factors. In order to compete against international counterparts, one need to ensure that the technology behind the brand is at least on par, ideally better, than that of your competitors. He further states that no matter how much your clientele believes in your brand message and even if they want the brand to succeed since it is a home-grown entity, without the required technological support and service delivery, the brand will not succeed. CONCLUSION In this chapter, brand development was outlined and the various aspects that branding entails such as brand equity. This chapter also looked at types of brands and its value. The quality of brands and brand salience is vital to ensure success. Nel (2008:78) states that this method also assists in quality control and ensures that poor products are identified. Early trademarks protected the buyer which could inform the source of the product. Brands today must deliver what they promise and in order to develop a strong and long lasting brand branded retailers must ensure that customers are satisfied with the product promise. The next chapter provides 105 the role of brand marketing and advertising to influence the consumer and also illustrates how public relations are used to advance this agenda. 106 C h a p t e r 5 BRAND MARKETING AND ADVERTISING INTRODUCTION The previous chapter outlined the various concepts of branding and how it is used to influence consumers. In this chapter the relationship of brand marketing and advertising is surveyed from a public relations perspective. Boone & Kurtz in Barker & Angelopulo (2007) aver that marketing deals with a process of planning and executing a conception, pricing, promotion and distribution of ideas, goods, services, organisations, and events to establish and maintain relationships among their customers. Boone & Kurtz in Barker & Angelopulo (2007) further state that advertising plays an important part in the retailer?s campaign which informs the public of the events, promotions and the various ranges of products that it carries. Advertising can only go as far as it can and the success will also depend on the retailer?s relationship with the consumer. According to Malhotra (2007b:271) marketing segmentation and product positioning are inseparably related. Buyers and sellers seek to be mutually accommodated in product/ service offerings that will be able to best satisfy preference and profit objectives. Buttle (1996:1) states that the 1950s was the era of mass-marketing, and the 1970s the era of market segmentation. The 1990s represent the genesis of personalised marketing, in which knowledge about quality which is forced companies to seek competitive advantage in other ways; more demanding customers; and rapidly changing customer buying patterns Buttle, 1996). According to Tellis in Tustin (2004:166) marketing communication budgets mainly comprised advertising (above-the-line) and promotion (below-the-line) expenditure. These expenditures are direct substitutes and are traded off in budget decisions, particularly when budgets are flat or decreasing and costs are increasing. 107 According to Elliott & Percy (2007:226) the American Marketing Association (AMA) regards a brand as a name, term, sign, symbol, or design, or a combination of them which identifies the goods and services of one seller or group of sellers that differentiates them from those of competitors (Elliott & Percy, 2007). The AMA definition emphasises the following reason that a brand enables a person to be able to identify between one alternative from a competitor (Elliott and Percy, 2007). The retailer?s corporate image also contributes to make an advertising campaign a success. According to Skinner et al. (2006:264) state advertising cannot do the whole job. The corporate image also affects the company?s operations and how the company?s appearance of its buildings and other assets are. Corporate image is the impression created by your appearance, what you communicate and how function. Corporate image is a visual system controlling your outlook (Skinner et al.,2006). McCole (2004:1350) states that many businesses have engaged the Internet in this new information era. This has become a new way of doing business, however the traditional marketing function is still around and will gradually fade away. In this information era, not all businesses are in a position to take advantage of the new technologies. Some these businesses have not because their core activities exclude them from being information-driven. According to Barker and Angelopulo (2007:131) marketing is regarded as developing discipline, and definitions and perceptions of which continues to change. In general marketing constitutes two perspectives: the first one regards marketing as a philosophy that emphasises customer satisfaction. The second perspective reveals marketing as a range of activities used to implement the management philosophy of a particular organisation, (Barker and Angelopulo 2007, Doyle 2002:61). Skinner et al. (2006:43) state that product creation for the specific market segment is basic to marketing function. It is basic since it relies on market research to identify consumer needs. Public relations techniques are utilised to explain the marketer?s problems, to relate the story of product complexity and of market pressures. Skinner et al. (2006) continue to state that it also reveals how the consumer benefits from product improvements, research and ardent competition. 108 MARKETING AND ADVERTISING According to Skinner et al. (2006:43) marketers and public relations practitioners are both regarded as communicators. The commonality between these two extends to deal with organisational relationships which deal with similar processes, techniques and strategies. They further mention that the two must function separately by the mission and goals of the organisation. Public relations are tasked by the goal of attaining and maintaining accord with social groups of which the organisation relies on achieving its mission. Marketing on the other hand has the goal to attract and satisfy customers on a sustained basis to achieve the organisation?s economic objectives (Skinner et al. 2006:43). According to Kotler in Mersham & Skinner (2001a:90) advertising is referred to as any paid, non-personal presentation and promotion of ideas, goods or services by an identified sponsor. Mersham & Skinner further mentions (2001a) that advertising can be simply defined as a persuasive message that requires payment for the space it requires within the chosen medium. Advertising is conducted to reach as many people as possible. Mersham & Skinner (2001a:90) states that historically much of advertisements where conducted through a mass communication media. Mersham & Skinner (2001a) further state that the advertisement is regarded as the message and through a mass medium such as newspapers, radio or television. Elliott & Percy (2007:226) state that advertising deals with talking broadly about any marketing communication that is meant to reinforce brand awareness and is built with a positive brand attitude, regardless of the communication of the message. Seeco (2007) states ?social dynamics which govern how people use brands, how they receive and interpret advertising and marketing messages, the language they find most accessible (both literally and figuratively), the idiom they apprehend easily, the social and linguistic nuances that help filter their ingestion of information and the humour that appeals to them as a softener for such information are key factors that determine whether or not campaigns can achieve the desired effect?. 109 MARKETING PERSPECTIVE According to Greenley & Shipley (1992:25) retail marketing is based on the understanding of customer needs, market trends, competitive activities, and other environmental factors, retailers need to collect information for effective marketing decision making. Cant et al. (1999:1) states that marketing plays an important role in every one?s life by participating in this process as customers for products and services. Barker & Angelopulo (2007:134) state that marketing as progressed through various diverse perspectives. This has evolved from constricted production and sales-oriented perspectives to the more customer-oriented perspective of modern marketing. Barker & Angelopulo (2007) further mentions the following are some of primary perspectives that are listed by production-oriented perspectives, sales-oriented perspective, marketing-oriented perspective, marketing concept, cause-related marketing, relationship marketing. These perspectives are unpacked and with other authors comments. Production-oriented Perspective This stage was regarded that customers would favour products that where available and products that would sell themselves. Management focused on improving product efficiency and on mass producing a few specific products, (Barker & Angelopulo 2007:134). Cant et al. (1999:1) states that a business that is production oriented focuses on the internal capabilities of the company rather than desires and needs of the marketplace. According to Strydom in Barker & Angelopulo (2007) consumer needs was ignored and more emphasis was placed on production rather than marketing. Further, Strydom in Barker & Angelopulo (2007) mentions that were consumer is relatively poor and unsophisticated, and they only purchased new products only when they can afford them. Consequently, these stocks began to pile up. This made management to realise the importance of simulating demand to increase sales. This change in management thinking brought about the sales-oriented era of marketing (Strydom in Barker & Angelopulo, 2007). Drummond & Ensor (2005:6) state that modern approaches relating to marketing orientation must focus on relational marketing approach. 110 Sales-Oriented Perspective According to Cox (1964:63) many supermarket executives assume that sales of most food products sold in supermarkets will be responsive to the changes in shelf space. Cant et al. (1999:10) mentions that this perspective is based on the premise that products and services are only purchased when aggressive sales techniques are used. When this is initiated it increases to high sales results and in turn yields high profits. According to Strydom in Barker & Angelopulo (2007:134) the 1930s to 1960s was regarded as the sales-oriented stage and organisations that followed this believed that consumers would purchase enough of the organisation?s products if they provided a promotion on all their products. Organisations regarded their competitors with greater awareness. They also strategically placed advertisements to communicate to their consumers about the products that are on promotion. Marketing-Oriented Perspective This aspect focuses on a foundation of contemporary marketing philosophy. Sales are dependent on a customer?s decision rather than the aggressiveness of a sales force, (Barker & Angelopulo 2007:135). According to Cant et al.(1999:11) the change from sales-oriented management to a marketing-oriented management resulted in not only emphasis on the sales message/price but also with the quality of products, the packaging, methods of distribution and the necessity of providing information by medium of advertising. Strydom in Barker & Angelopulo (2007:135) state that the marketing era emphasised the sales message, the price, the quality of products, the packaging and the methods of distribution, and sought to communicate messages to the target audience through marketing communication. Marketing Concept Barker & Angelopulo (2007:135) state that the marketing concept is a straightforward and logical idea, which places the customer at the focal point of activities of the organisation. Cant et al. (2007:136) cites the following four concepts for principles that deal with essences of marketing: 1. Long-term maximisation of profitability 2. Consumer orientation 3. The integration of all business activities directed at profitability and the satisfaction of consumer needs, demands and preferences 4. Social responsibility (corporate social responsibility maintains that organisations are part of the larger society in which they exist and are accountable to society for their performance) 111 Caused-Related Marketing Barker & Angelopulo (2007:137) state that organisations have become more active in cooperative development of programmes and partnerships with non-profit organisations. These are designed programmes that benefit all parties concerned and are known as caused-related marketing or CRM. This process increase sales, the enhancement of the reputation of the organisation and brand, new customers and an increase in employee loyalty. Table 2 depicts the six principles of successful CRM. Integrity Adhering to highest ethical standards in all CRM activities and relationships Transparency Ensuring that communications between the partners and with consumers are legal, decent, honest, truthful and clear Sincerity Providing strength and depth to the relationship with a non-profit organisations or cause Manual respect Appreciating the intrinsic value that the non-profit organisations to the VRM partnership Partnership Ensuring that both sides share the risk and the rewards Mutual benefit Ensuring that all parties? objectives are being met Table 2: The six principles of successful cause-related marketing Source: Cant et al. (2004:17) PROMOTIONAL MIX According to Hogarth-Scott (1999:669) the manufacturer dictated the marketing mix and, to some extent, the retailer?s role was a conduit for the manufacturer?s brands. Retailing revolution in the 1970s and 1980s resulted in the growth in absolute and relative size of retailers and the replacement of manufacturer dominance in the distribution channels by retail chains and, in the process, elimination of wholesalers and the backward integration of the retailer (Hogarth-Scott, 1999). 112 Barker & Angelopulo (2007:158) state that the integrated marketing communication (IMC) is a holistic approach when a promotional mix is advocated. This key issue ensures consistency between any promotional mix component and the overall marketing communication efforts for the support of organisation?s corporate brand (Barker &Angelopulo, 2007:158). According to North & Enslin (2004:152) as an element of the marketing mix, the role of promotion or marketing communications is to communicate product or service information, and specifically the value and benefits of a certain brand to potential customers. The primary goal for all marketing communication efforts is to inform, persuade and remind the target market of the product (brand) and/or service benefits, with the objective to influence customers attitudes and purchase behaviour (North & Enslin, 2004). According to Lake (2009) a strong brand is invaluable as the battle for customers intensifies day by day. It is important to invest in researching, defining, and building your brand. Your entire brand is the source of a promise to your consumer. It is a foundational message in your marketing communication and one you do not want to omit. 113 Figure 8: The Promotional mix Source: Barker and Angelopulo (2007:158) The following nine elements of promotional mix are illustrated in the figure 8. Your Business (2008:38) states that marketing communication efforts is very beneficial, features and applications for products and services are focused towards a targeted group. Doyle (2002:239) states that it is not enough to just have good products or even services. To ensure sales and profits to be achieved communication is important. Doyle (2002:239-240) further states that there are several reasons why managers communicate to their markets or audiences: ? Inform. Management may need to make the audience aware that their product or service exists, and to explain exactly what it does. Such tasks are obviously important for new products and services. ? Persuade. A further stage is creating favourable attitudes to the company or its brands. Management will seek to persuade customers and the trade that their brand has benefits which are superior to those of competitors. Personal Selling Internet Sales management Sales promotional Publicity Sponsorship Directing marketing Advertising Marketing public relations Marketing communication or Promotional Mix Relationship Marketing 114 ? Image creation. In some markets, the image created by the firm?s communications will be the sole or main differentiator among brands. The lager market is one example of the importance of image creation. All mainstream lagers are similar products, and the low temperature at which are served today masks any differences that may exist. In a blind product tests, drinkers cannot discriminate between them. Instead they talk about their preferred brands ? Carlsberg, Heineken or Carlin Black Label ? in terms of the slogans, symbols and actors used in the advertising. The communications ? the images, confidence and attitudes created ? become the brand. In such markets, where the products are so simple and similar, communications- created images provide consumer with the only means to differentiate. Effective communications becomes the key to market share. ? Reinforcements. Much communication is aimed not at winning new customers, but at reassuring existing ones that they have made the correct choice. For most established businesses, retaining existing customers is more important to future sales than wining new ones. Effective communications reinforces current customers by reminding them that their brand is still reliable, relevant and good value. Without them, customers would be seduced by other brands offering new benefits and values. Further, Doyle (2002:240) states that marketing communication entails personal selling, media advertising, direct response marketing, sales promotion and public relations. The relative importance of these items varies from country to country depending on the available media and the local regulations. Relationship Marketing According to Hogarth-Scott (1999:668) relationship marketing is central to business disciplines and marketing places. Business are realising that maintaining and establishing relationships adds to their success with others in (or outside) the marketing place. Hogarth-Scott (1999) continues to state that development of relationships is of strategic importance. Buttle (1996:1) states that marketing is no longer simply about developing, selling and delivering products. Buttle (1996) continues to mention that it is progressively more concerned with the development and maintenance of mutually satisfying long-term relationship with customers. Barker & Angelopulo (2007:137) avers that relationship marketing deals with an expansion of the relationships between the organisation and the government, the public suppliers, employees, and current and potential customers. 115 Barker & Angelopulo (2007:137) state that the 1990s introduced relationship marketing which filled the void in marketing theory. This process presented a paradigm shift in the way marketing is practised with the basic needs of the consumer still intact. The relationship viewpoint focused on identifying and established, which maintains and enhances and, if necessary, bring end to a relationship with customers (Barker & Angelopulo, 2007). Mabqele & De Abreu (2009:24) state that brands enable consumers to have a relationship with products. Brands facilitate relationship, based on a number of factors; for example, the promise made to the consumer platform they provide for a conversation that results in a particular choice being made (Mabqele & De Abreu, 2009). Smilansky (2009:1) states that people talk about experiences every day because life is ultimately an amalgamation of daily experiences. Experiences are real and are true life. If someone is going about their daily lives as usual, and within their normal routine they engage in a positive brand experience, then that consumer will be likely to discuss or mention it to most of the people that they interact with for the rest of the day or even week. Smilansky (2009) further states that by giving something positive back to the people who spend their hard- earned cash purchasing products and services, this adds to the strengthening and building of real relationships between customers and brands. Buttle (1996:1) states that enduring relationships with customers cannot be duplicated by competitors, and therefore provide for a unique and sustained competitive advantage. Franzak et al. (2001:634) states that many businesses regard customers? profile information to be an important ingredient for building relationship. It provides an advantage in a competitive marketplace with knowledge about the target buyer needs to be more detailed, more personal, and increasingly timely. Personal Selling According to Blythe (2006:254) personal selling is often regarded as the most powerful tool for a marketer. No technique is as powerful as a salesperson sitting with a prospective customer and developing solutions to the customer?s problems based on the firm?s product range. Perreault & McCarthy (1996:421) states that advertising is regarded as a main form of mass selling and is any paid form of non-personal presentation of ideas, goods, or services by an identified sponsor. They further state that advertising includes the use of media as magazines, newspapers, radio, television, signs and direct mail (Perreault & McCarthy, 1996). 116 Turor2U (2010) states that personal selling deals with verbal communication with potential customers for a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately focuses on closing the sale. Turor2U (2010) further states that personal selling is one of the oldest forms of promotion. It involves the use of a sales force to support a push strategy (encouraging intermediaries to buy the product) or a pull strategy (where the role of the sales force may be limited to supporting retailers and providing after-sales service). Perreault & McCarthy (1996:448) mention that promotion is regarded as communicating with potential customers. Almost all companies can benefit from personal selling. Semenik & Bamossy in Barker & Angelopulo (2007:158) state that personal selling deals with the presentation of information about an organisation?s products or service through one individual to another or to a small group of people. Personal selling assists the communication flow between the organisation and its customers in the following two ways: 1. Salespeople are the ones who are responsible in implementing marketing strategies. 2. Deals with the salespeople having the need to expand to include a wide variety of marketing activities. Perreault & McCarthy (1996:450-451) state that marketing managers must decide how much and the kind of personal selling efforts that are needed for each market mix. Sales Management A brand can only be worth something if it is seen to provide a product of quality. Once that is achieved it needs to be marketed and sold. In order for this to be accomplished a committed sales team with a workable sales plan is required. According to Blythe (2006:268) the sales force is out of sight of the management and selling is self-managed. This process poses a problem since supervision is difficult and impossible. Sales persons are often encouraged to be innovative, creative and work independently. They are also paid according to their results. 117 Sales Promotional According to Perreault & McCarthy (1996:421) sales promotion refers to promotion activities and many assume that promotional budgets are spent primarily on advertising which is largely due to advertising is all around them. Advertisements that are in magazines and newspapers and on television are impressive and costly. It must be noted that special sales promotions coupons, sweepstakes, trade shows, sporting events sponsored by firms add up to be even more expensive (Perreault & McCarthy 1996). KnowThis.com (2010b) mentions that sales promotion describes promotional methods using special short-term techniques to persuade members of a target market to respond or undertake certain activity. As a reward, marketers offer something of value to those responding generally in the form of lower cost of ownership for a purchased product (example, lower purchase price, money back) or the inclusion of additional value-added material (example, something more for the same price). Smilansky (2009:4) states that sales promotion in the retail environment deals with a variety of special offers, discounts, rewards, and vouchers. Field marketing (such as in-store promotional staff, field sales, auditing, mystery shopping, merchandising and sampling) are generally classified within the sales promotion channel Smilansky, 2009). KnowThis.com (2010b) continues to state that sales promotions are often confused with advertising. For instance, a television advertisement mentioning a contest awarding winners with a free trip to a Caribbean Island may give the contest the appearance of advertising. While the delivery of the marketer?s message through television media is certainly labeled as advertising, what is contained in the message, namely the contest, is considered a sales promotion. The factors that distinguish between the two promotional approaches are: 1. Whether the promotion involves a short-term value proposition (example, the contest is only offered for a limited period of time), and 2. The customer must perform some activity in order to be eligible to receive the value proposition (example, customer must enter contest). The inclusion of a timing constraint and an activity requirement are hallmarks of sales promotion. 118 According to Skinner et al. (2007:226) ?promotional? refers to communication undertaken to persuade others to accept ideas, concepts, or things. A promotional strategy is controlled, integrated programme of communication methods designed to present an organisation and its products and services to prospective customers, to communicate need-satisfying attributes to facilitate sales, and thus to contribute to long term profit performance. Engel et al. in Skinner et al. (2007:226) continue to mention that promotional tools include advertising, personal selling, sales promotion, reseller support (trade promotion), publicity, public relations, and corporate advertising. McNamara (n.d.) states that organisations usually have little control over the message in the media, at least, not as they do in advertising. Regarding publicity, reporters and writers decide what will be said. According to Barker & Angelopulo (2007:167) publicity is also referred to as corporate publicity, can be defined as promotion in the form of a media release to ensure exposure of a product to a known target audience. Barker & Angelopulo (2007) further mentions that public relations and publicity are often also involved with corporate advertising, sponsorships and other initiatives beyond the borders of the promotional mix, hence the term marketing public relations. Marketing Public Relations According to Smilansky (2009:4) public relations is a process of managing the flow of information between an organisation and its public. Its activities include award ceremonies, celebrity endorsements, press media relations, and events which focus on developing a positive image for the organisation towards the key stakeholders. Mersham et al. (1995:11) state that it is a conscious effort in providing information and creating goodwill, influence, gaining understanding and propagating the message to the audience. Skinner et al. (2006:4) defines public relations as management. FitzGerald (2001:43) states that public relations practitioners often deal with many types which include: advocacy, cooperative, sponsorship, institutional, public service announcements, and advertorials. When public relations use paid-for-media, the message is not necessarily to sell a product or service, but usually to feature an image or to evoke behaviour other than buying. Levine (2003:16) states that the public relations often misunderstood disciple and the business world often confuses it with publicity. 119 According to Lyles in Levine (2003:16) people will migrate to things they can control. The concepts of branding and public relations are closely intertwined. The public relations view is to encourage the public to maintain or establish positive thoughts about a particular company, product, service, or individual (Levine, 2003). According to Public Relations Blogger (2010) branding is an idea that deals with a particular set of attributes which will encourage the public to have positive thoughts about a particular company, product, service, or individual, a subtle distinction but it is an essential one. According to Cutlip et al. (2002:253) public relations has been an essential supplement to the marketing effort, this is particularly in consumer product and services companies. Counsellors and staff professionals, participation in the ?marketing mix? are their bread and butter which pays their bills. Cutlip et al. (2002) further aver that public relations support for marketing includes the following: ? Building marketplace excitement before advertising breaks (announcing that VW was bringing back the Beetle) ? Driving the communication programme when there is no advertising (news that Crayola was ?retiring? some colours and replacing them with eight new ?child-tested? colours) The mass economy has been replaced by a ?customer economy? which calls for customer-to- customer communications built on trust. Public relations play a very powerful role in such a relationship (Karolefski, 2010). According to Daddi in Karolefski (2010) a brand is a perception. In order for this to take place one has to motivate a significant majority of the audience being targeted to perceive a brand in a positive, desired manner. Public relations play a major role in establishing and shaping those perceptions. Direct Marketing According to Bauer & Miglautsch in Blythe (2006:207) direct marketing as a cybernetic marketing process which utilises direct response advertising in prospecting, conversion and maintenance. O?Conner & Galvin (2001:92) aver that the concept of direct marketing is simple and instead of broadcasting a mass marketing message through television or print to a wide number, customised message is sent to an individual, and direct, basis to a much smaller number of customers listen to the message and buy the product or service. Smilansky (2009:4) states that direct mail deals with posting marketing materials directly to people?s homes can be used as part of CRM programmes; this is designed to engage consumers for a 120 direct response or sales at home. Smilansky (2009) further state that packaging is important to every brand as it communicates a brand identity to the consumer through the colours, shape and overall look and feel of the product. According to Wise Geek (2010) direct marketing is a sometimes controversial sales method by which advertisers approach potential customers directly with products or services. The most common forms of direct marketing are telephone sales, solicited or unsolicited emails, catalogues, leaflets, brochures and coupons. Successful direct marketing also involves compiling and maintaining a large database of personal information about potential customers and clients. These databases are often sold or shared with other direct marketing companies or associates (Wise Geek, 2010). Skinner et al. (2007:185) state that the recent surge in demand for direct-mail advertising has come about because it allows the marketer to measure the success of advertising. Direct mailing is also said to be a good back-up for radio, television, or print advertising, creating a total campaign. This allows the marketer to conduct personal research. Figure 9 illustrates the Home Choice Company which operates in South Africa uses direct marketing to conduct their business operations. The Home Choice Company contacts their customers through tele- sales, postal-selling and various other communication modes. 121 Figure 9: Home Choice Home page Source: http://www.homechoice.co.za/pages/default.aspx?gclid=CLDH3aOv7qICFSUXswodcQvSfQ INTERNET WITH SOCIAL MARKETING According to Smilansky (2009:4) digital is one of the fastest growing marketing channels in a fluid technology age. Consumers are connecting with brands online more than ever before, and digital can be a cost-effective channel for generating word-of-mouth online (otherwise known as word-of-web). Viral marketing is also emerging as a discipline, which forms a part of the digital spectrum: a successful viral campaign creates word-of-web at exponential rate, allowing a message to travel as fast as a virus, hence the name (Smilansky, 2009). Viral Marketing According to Harden & Heyman (2009:238) web video content that gains widespread popularity through the process of being shared on the Internet, primary via video sharing sites like YouTube, but also via email and blogs. Harden & Heyman (2009:234) state that marketing technique that utilises social networks to spread a marketing message or to build brand awareness, often by encouraging voluntary sharing of branded content. 122 According to Vansickle (2010) viral marketing uses Internet relationships to promote products, people and events. It relies on users to inform their contacts/ friends about things in order to create ?buzz.? Effective viral marketing is inexpensive, and the results can be priceless. Drummond & Ensor (2005:158) mention that viral marketing is a new concept. It is information that is passed from one person to another just as a virus would be. This process relies on a message being transferred from person-to-person. Transmission is increased when word-of-mouth type of communication is enhanced by electronic (email, Internet) means (Drummond & Ensor, 2005:158). Harden & Heyman (2009:238) state that a web video is an animated or live-action film, typically short subjects, used for entertainment or marketing outreach. Harden & Heyman (2009:112) mention that web video is exploding and money is being invested in video search, video sharing, video advertising solutions and ways to measure all this activity. Branded retailers should make it a concerted effort to use these new forms of technology to advance their brands. 123 Figure 10 illustrates a company using viral video. Answers.com (2010b) states that MySpace is an online social networking service that allows users to share messages, interests and photos with a growing body of friends. Users can send emails, post videos, listen to music, and write blogs; the site also includes classified ads and posting of events. Blippr (2010b) states that MySpace is a leading worldwide social network that offers customisation of your profile and image on the web. According to Harden & Heyman (2009:237) social marketing uses social networks or social media such as Facebook and MySpace, online forums and wikis to spread a marketing message. Social marketing is no doubt the newest buzz as a method to generate website traffic. However, many are still unsure how to approach the social marketing ring and the steps needed to be effective when doing so (eHow, 2010). Sitat (2010) mentions that shifting from computers to cell phones is something for brands to acknowledge and follow keenly, especially with the content on mobile phones that are Internet-driven. The youth of today are very technologic savvy. Figure 10: Viral Video Source: http://www.articlesnatch.com/Article /Infomercials-Web-Internet- 124 Social media and Business-two-Business According to Business Dictionary (2010c) B2B is trading between firms characterised by relatively large volumes, with competitive and stable prices. This deals with fast delivery times and often on deferred payment basis. In general, wholesaling is B2B. Macneil in Vosgerau et al. (2008:206) state that business-to-business (B2B) relational and is based on characteristics such as commitment and trust. According to Graham (2010) social media encompasses the entire digital landscape where core content is user generated and the community often dictates the evolution of the space (example, brand communities, blogs, podcasts, wikis, and social networking). In order for this to be successful a high degree of participation is required (Graham, 2010). Marketing and advertising uses social media to engage B2B easily and effectively use this for B2C initiatives. CRM Buyer (2010) states that B2B organisations have engaged online social media technologies to be useful marketing tools and adopted this as a best practice for their B2C peers. This new channel is not just a way to diffuse news and find out about customers preferences; it is also there to serve as a medium for a two-way dialogue. To be truly effective as a tool to build customer loyalty, social media cannot exist in a silo (CRM Buyer, 2010). According to Graham (2010) many B2B businesses have already been involved with social media for years, but out of the public eye using different names. While B2C companies have been recently building up very visible external networks, B2B companies have had a long run with developing internal networks. Employee intranets, client extranets, supplier sites, and customer forums were all early precursors of social media in terms of community building and user-generated content (Graham, 2010). According to Simkin (2000:154) services marketers have outlined significant differences for ?their marketing, on the whole, texts and marketers have argued there are relatively only minor differences between the marketing of consumer goods and industrial or business-to-business goods. According to Harden & Heyman (2009:233) B2B abbreviation refers to ?Business-to- Business? a business that markets its services or products to other businesses. Webster & Keller in Davis (2008:220) states that brand managers in B2B markets must concentrate on developing and communicating points of difference, such as the firm?s technical competence 125 or the strength of the company?s reputation, as the basis for creating differentiation and providing superior value or service. McQuiston (2004:345) mentions that today?s competitive business environment, customers in the business-to-business (B2B) arena have more information, access to more choices, are more sophisticated, and as a result have higher expectations than ever before. McQuiston (2004) further states that marketers of industrial products, the end result of this highly competitive environment and requires greater effort to create some form of product differentiation to avoid their products being viewed as commodities. Social media and Business-Two-Consumer (B2C) According to Harden & Heyman (2009:233) B2C is an abbreviation refers to ?Business-to- Consumer?. B2B is a business that markets its services or products to the consumer. Solis (2010) mentions that social media is often misconstrued as a medium for business-to- consumer or B2C engagement and becomes discounted to be a viable communications network for companies who focus on business-to-business transactions. Solis (2010) continues to state that B2B impacted by online activity and is faced with a prime opportunity to not only cultivate communities in social networks and other social channels, but also amplify awareness, increase lead generation, reduce sales cycles, and perhaps most importantly, provides opportunity to learn and adapt with market dynamics in real-time. 126 Figure 11 illustrates marketing effectiveness with comparison of various forms mass communication. Figure 11: Effectiveness of the forms of Mass communication Source:http://www.creativewebsitemarketing.com/services/business- Customer to Customer (C2C) According to the Investopedia (2010) Customer To Customer (C2C) businesses have many online operations. An example is the online auctions industry and classifieds such as Ebay and Craig?s List are very successful customer to customer business models. These sites do not look to directly sell goods to their members, instead the customers are exchanging with other customers (Investopedia, 2010). According to Livraghi (2000) person-to-person transactions are regarded to be the oldest form of e-business. They have been there from the beginning, long before there was any widespread use of the Internet. They continue to be quite invisible to anyone thinking that all business is on a website. They can (in part) be supported on large and visible websites. Livraghi (2000) further states that it is only one of many ways of helping people to deal directly with each other or to buy more conveniently from companies. 127 MARKETING WITH LOYALTY PROGRAMMES Humby et al. (2007:63) state that customer loyalty will contribute to a steady cash flow to a company and therefore it is to the best interest of the company to either maintain or establish a loyalty based company. Humby et al. (2007) provides the following three points: ? Some customers are inherently predictable and loyal, no matter what company they are doing business with. They simply prefer stable, long-term relationships. ? Some customers are more profitable than others. They spend more money, pay their bills more promptly, and require less service. ? Some customers will find your products and services more valuable than those of your competitors. No company can be all things to all people. Your particular strengths will simply fit better with certain customers? needs and opportunities. Loyalty Programmes Branded retailers must implement some form of loyalty programme to increase and maintain their customers based and should not engage consumers with attractive promotions and sales. Television programmes in South Africa is regularly interrupted with advertisements. This is done to secure top programming for their viewers although this is needed viewers still regard this as an irritation. This could be compared to what Shannon refers to ?noise?. Similansky (2009:1) states that consumers are constantly bombarding a large amount of repetitive traditional advertising messages which interrupts their TV shows and generally just gets in the way. Similansky (2009) continues to mentions that it is true that if you see an advert enough times, it is likely to influence you when you are ready to purchase, your mind tends to remember. This does not mean that customers are buying because they have a real emotional connection with the brand (Similansky, 2009) Many branded retailers use a point regenerating system which provides rewards to customers, which promotes ?Customer Loyalty?. Clicks, FNB, Nedbank, Woolworths, and many other branded retailers use this system effectively to reward customers. These points are calculated and convert to money which can only be spent in store example Clicks. The eBuck?s system used by First National Bank (FNB) can be redeemed at other participate branded retailer such as Incredible Connection Stores, Woolworths, Ster-Kinekor and Makro. Such types of incentives are a powerful marketing strategy that is used to build and maintain their ?Customer loyalty?. 128 According to Humby et al. (2007:30-31) one needs to decide on what standard currency that most customers will engage in due to the return of value. The most four effective types of loyalty currencies are: points-led, discounted-led, information-led and privilege-led. Humby et al. (2007) further state that these can be offered as stand-alone or all can be used as a rounded benefits package to members. Humby et al. (2007) provides the following four loyalty currencies: ? Points-led: This is a generic description for schemes that encourage members to collect and spend their units of value, either at a fixed or variable issuing rate, or at a fixed or variable redemption rate. So whether they are marketed as points, miles, stars, units, or cents, the basic concept is the same. Customers view these points very much as an operating currency, with a clear link between the numbers of points collected and a particular value at redemption. As a reference to the above point, the Clicks store is one such branded retailer that uses this system. This also serves as a tracker to determine how many or how often club members shop at their store. ? Discount-led: tiered or preferential pricing is based on the simple proposition that retailers make it worth your while to be because the more you shop the less you pay. There are several retail loyalty schemes in the USA that automatically offer members lower prices at the checkout. There are basically two prices structures one for the customers and a lower one for members. The CUM Christian Book store uses the discount-led-awarding members a 10% discount and none member customers pay the normal price. With this system, members will eventually pay less for products and this will impact on the branded retailer?s profits. ? Information-led: loyal customers will value help as much as cash. Take the special interest clubs that Tesco has added to the club programme. The Baby club provides information at a time when potential parents really need it. The value of the information builds that Tesco is a trusted brand, offering straightforward advice on a range of relevant subjects. Tesco has found that when it provides those customers who have opted-into that part of the programme. 129 The AASA or AA operates in South Africa and although information is provided publicly, members get many other offers and benefits. According to the Automobile Association of South Africa (2010) AA offers a large range of services that cater consisting of every motoring and travelling need. Since pioneering roadside assistance in South Africa, they have gone on to add a range of exclusive member only benefits and savings. From roadworthiness testing and free up-to-date road information to maps, luggage and air tickets, we provide solutions you can trust, giving you everything you need to get you moving, keep you moving and move you forward. ? Privilege-led: American Express claims that ?membership has its privileges?. The underlying principle is that customers prize access to service or facilities that have a rarity value or that might be difficult to attain without the negotiating muscle of the programme or club they belong to. By definition there is only limited capacity in airport lounges, so there is inherent value for many in being invited by an airline into their ?inner circle? to enjoy free access to pre-flight drinks and pretzels and a comfortable armchair. This model is increasingly under strain. Retail research consultancy Miintel has found that few consumers today still use their store cards as heavily as they once did. The SAA in South Africa runs a privileged-led loyalty Voyager programme providing their customers with benefits that customers can use either within the airline company or with their partners. Humby et al. (2007:32) states that a mass-membership programme is a long-term, expensive undertaking, however when it works, it repays the investment many times over and in many ways Tesco has proved. This process has transformed customer behaviour and attitudes. Humby et al. (2007) further states that it has provided unprecedented levels of hard information that no other source could provide. This has systematically transformed into rich, actionable customer insight. Club card has helped Tessco create new businesses. It has created incremental sales and profits. Marketers use segmentation to identify consumers? and focus on specific needs. Blythe (2006:213) mentions that direct marketers use a different approach to segmentation that traditional marketers use. Traditionally, segmentation is top-down approach which begins with a mass of consumers and divides them, according to their needs, into a set of sub- markets or segments (Blythe, 2006). 130 Du Plessis & Rousseau (2007:9) state that positioning refers to the perception of the product or service attributes in the mind of the customer. It is the image of the product relative to competing products, brands, or services. Lawrence (2008:46) states that a suitable internal brand communication strategy is required to further bring in behaviour. With branding strategies, it is important to understand the nature of the audience. Audience segmentation is important since people respond to and absorb information in different ways. ADVERTISING According to Barker & Angelopulo (2007:255) consumer attitudes are impacted by advertising. Barker & Angelopulo (2007) further mention that brand equity is regarded as a set of assets and liabilities linked to a brand?s name and symbol that add to or subtract from the value provided by a product or service to an organisation and/ or the organisation?s customers. Free Management Library (2010a) states that advertising makes the product (or service) attracting the attention of potential and current customers. Advertising is focused on one particular product or service. Free Management Library (2010a) further states that an advertising plan for one product might be very different than that for another product. East et al. (2008:272) aver that ads may affect our beliefs and attitudes but, ultimately, they must affect behaviour if they are to be useful. According to Lonsdrof in Karolefski (2010) customers of today have grown up being bombarded with all kinds of brand messages. Pasternak (2009) states that branding goes far beyond marketing. The success of the business reflects intended brand performs. The most valuable assets you have are your people. They must be well-trained in articulating and in delivering your brand. Pasternak (2009) further states that this step is important for service organisations that do not have concrete products. Online Advertising Online advertising has growing in popularity, with a growing number of businesses choosing to engage places where consumers visit online. Online brand advertising deals with banner ads, blogs and even video which are having an effect on the consumer. Mersham & Skinner (2001a:198) state that Internet technology has positioned advertising agencies with this exciting new opportunity in digital interactive advertising as in traditional advertising. Online Advertising is big business and it is growing by the day. Companies are spending on online advertising to ensure that they capture the virtual community. 131 Figure 12 presents how online advertising as increased over the year and with USD 42 million is projected. Figure 12: US Online Adverting Spending, 2001-2011 (billions) Source: http://www.marketingcharts.com/direct/ten-key-online-predictions-for-2008-2924/emarketer-prediction-us-online-ad- spend-2001-2011jpg/ According to My Ad Base.com (2009) online advertising has becoming an increasingly important for brand advertising. Using online advertising has grown rapidly and many companies are using the following: websites, banner adverts, video and even blogs. This is used to establish their brand as a trustworthy friend to the consumer. The growing focus to web based media advertising and it is important not to ignore these opportunities while it exist within the new media for brand advertising. Podcast Advertising Wreden (2005) states that podcasting is the proverbial ?Next Big Thing?, and this is due to the 12 million iPods Apple has sold. Podcasts can be easily created with software that is bundled with every Mac. Wreden (2005) further states that more sophisticated companies are developing broadcast-quality programmes on specialised topics and others are sponsoring programmes with wider appeal, similar to the soap opera sponsorships during radio?s heyday and the earliest days of TV. Some companies have advertising, comparable to 30-second radio commercials, usually at the beginning and end of the podcast (Wreden, 2005). 132 According to Harden & Heyman (2009:162) over 100 million iPods in the marketplace and the iTunes music stores eclipsing CD sales, to say Apple has achieved critical mass would be an understatement. iPodders are a vast, diverse and engaged community you can effectively tap for your communication strategy (Harden & Heyman, 2009). Wreden (2005) states that podcasts have the advantage of being time-shifted as easily as a TiVo unlike Internet advertising, that requires consumers to be PC bound. Wreden (2005) further states that consumers are able to listen to podcasts at their convenience, which reduces distractions and increases receptivity. One disadvantage, however, is a lack of measurement. Because the podcasts are listened to away from the computer, real-time tracking is impossible. As a result, some podcast advertisers are testing the use of toll-free numbers or other direct response vehicles. Sponsorship According to Smilansky (2009:4) sponsorship is a great tool for brands that target niche audiences. Smilansky (2009) further states that sponsorship as the ability to earn credibility and communicate with and audience in their preferred environment. Traditionally, sponsorship is a practice that involves branding at sporting and cultural events. Smilansky (2009) continues to mention that sponsorship aligns the brand directly with people?s current perceptions of the company or event in question. Skinner et al. (2007:235) states that sponsorship is essentially regarded as a business deal which is intended to provide advantages to both the sponsor and the sponsored. Sponsorships play an important role to ensure that sports, community organisations, students at educational institutions, are able to continue to function. Skinner et al. (2007) state that if it is successfully designed and carried out, with properly defined objectives sponsorship arrangements can be of a real benefit to the community in providing events and facilities which would otherwise not be affordable. Recently the FIFA World Cup was held in South Africa and this was the first for Africa. South Africa hosted a very successful World Cup. Mabqele & De Abreu (2009:24) state that brands are powerful and serve as personal channels of connection that link us both intricately and intimately, to products, services, ideals and events. 133 The role of commercial brands is generally well-established, but the value of official brands, such as those that are part of the 2010 FIFA World Cup, is often questioned, though they serve a similar function. Official brands provide similar opportunities and conversation points with their audience. In the context of the 2010 FIFA World Cup, this official brand created an experience that has become a point of reference at the World Cup 2014. What makes this official brand so valuable is that it relates to a tournament that happens every four years, but 2010 is also South Africa?s brand (Mabqele & De Abreu, 2009). Business Report (2010) mentioned that South Africa scored nine out of ten for their organisational ability for the 2010 World Cup. The successes of this World Cup were a result of many contributing factors. Figure 13 provides FIFA?s World Cup 2010 sponsors. Figure 13: World organisation and partners Source: FIFA (2010: http://www.fifa.com/worldcup/organisation/partners/ index.html) 134 FIFA indicated a campaign that is designed to developed and promote education all which is called ?1Goal Education for All.?1 Goal Education for All (2010) states that the 1GOAL is a campaign that uses the power of football to ensure that education for all is a lasting impact of the 2010 FIFA World Cup. By bringing together footballers and fans, charities and organisations around the world, with a united front we can call on world leaders to make education a reality for 72 million children by 2015. According to 1 Goal Education for All (2010) The organisation uses celebrities and world leaders to become ambassadors such as President Jacob Zuma, Carles Puyo, Jessica Alba, Kevin Spacey, Ban Ki Moon, Hillary Clinton and many others who promote and propagate this through their platforms and other various forms of communication such as social media, television, radio, newspapers. They also engage the public in general to sign-up and become a supporter of this campaign and through this the organisation can clearly demonstrate their support base. Statistics of this campaign can be used to encourage branded retailers to adopt and provide funding for this campaign. Branded retailers can benefit since their participation will encourage and influence consumers to support them. Recruiting members of the public is done through social media such as Facebook (1 Goal Education for All, 2010). Figure 14 is a sample of the public joining this campaign. Figure 14: 1Goal Squad Source: http://apps.facebook. 135 DIGITAL RADIO ADVERTISING According to Wreden (2005) digital radio is also threatening to re-write some branding rules. In addition to offering cable-like access to hundreds of channels, digital radio lets listeners pause, rewind and time-record high-quality broadcasts. Additionally, relevant information such as artist and album information can be transmitted. Wreden (2005) continues to mention that this means a dramatic change in portable entertainment. Digital radios will be able to transmit scrolling news, traffic reports or ads to the radio?s screen. Wreden (2005) further states that screens get larger, traffic maps can accompany traffic reports, or logos or other visuals can be displayed on the screen during ads. Channels, sub-channels and even sub- channels will allow advertisers to target segments more precisely. Some are even talking about coordinating digital radio with the GPS system to deliver ads specific to the listener?s location (Wreden, 2005). PACKAGING Poggenpoel (2008:82) mentions that packaging is very important for marketing strategy which aids in the glamorising and attracting attention for the product. In some instances the packaging costs more that the product which is designed to lure customers. He furthers states that most customers judge the product packaging and attractive packaging is vital to get first- time buyers to purchase the product. It can also be regarded as deceptive communication which to lure customers (Poggenpoel, 2008:83). Gass & Seiter (2003:260) state that deceptive communication strives for persuasive ends and a general persuasive strategy that aims at influencing beliefs. Hart & Murphy (1998:10) state that some brand owners deliberately set themselves up to appeal to the myopic shopper, the shopper who recognises products by generalised shape or colour (In Britain, all bottles of tonic have yellow labels, soda black-and-white labels, ginger ale brown and green labels, and so on). Stern & Ander (2008:117) state that one of the easiest and most visible ways to show commitment towards the environment as ?green offering? for sale reusable shopping bags as an alternative to disposable paper and plastic bags. 136 According to Landa (2006:9) consumer society is where one comes into contact with advertising in the print, radio and television and online advertising and with visual identity applications such as logos, packaging design, and corporate communication application builds our perception of a brand is an individual experience that contributes to the overall brand experience. Blythe (2006:174) states that graphics are the visual image conveyed by the pack, and include the logo, the print font and illustrations used on the package. Graphics enhances the designed packaging and since it is attractive customers tend not to discarded but recycle them. Packaging that is made out of durable material are often re-used. This also serves as a reminder to the consumer that they need replantation their stock. Examples of such are water bottles, jugs; tin and plastic containers are items that are retained to be re-used as container for other house-hold items (Blythe, 2006:174). Consumers must feel confident with packaging and with food items the contents must be hygienically packed. According to Stewart in Wells (2007:379) the basic function of packaging is to ?preserve product integrity? against potential damage from climatic, bacteriological and transit hazards. 137 Table 3 illustrates the various ways graphics communicate the brand or product. Effect Explanation Reinforce the brand name or image The colours used on the pack, and the wording of the pack, will reinforce the image. For example, old fashioned writing will reinforce the ?traditionally made? image of a can of ginger beer Attracts attention An eye-catching graphic will make the product stand out; care should be taken that the image used for catching the eye is consonant with the image of the product. Adds aesthetic quality Some packages are so attractive people keep them and use them as containers; this was the original idea behind putting landscapes on tops of biscuit tins. Trigger Lifestyle aspirations Pictures on the packages can show the product being used by attractive people, or can show attractive situations; mountain scenery, beaches or luxurious homes have all been used for this purpose. Add value Christmas packs of children?s sweets often have a game or puzzle printed on the back; jars of mustard sold in France often have cartoon heroes printed on the so that they can be used as children?s drinking glasses; boxes of matches have worth more to consumer without adding significantly to the cost of production. Can incorporate cues and symbols A wooden spoon on a pack of cocking fat can invest the product with traditional reliability of an old-fashioned kitchen [Pilditch, 1973]. Horizontal lines on packages suggest restfulness and quiet, vertical lines denote strength and confidence, right to (left for Arabic and some Oriental cultures, due to the direction of reading script). Rounded lines suggest femininity; sharp, angular lines suggest masculinity. Can encourage people to touch the pack Yves Rocher aromatherapy oils have the letters running right around the pack so that consumers have to pick up the pack to read the writing. Table 3: Effects of graphics on consumer perceptions Source: Blythe (2006:175) According to Mininni (2005) companies are in business to sell something, whether it is a product or a service. Every product or service is packaged. Every package design should represent an extension of the brand assets of that company. If the brand identity and package design is in line with the brand strategies and marketing initiatives, the end result is packaging that contributes substantially to marketing ROI (Mininni, 2005). Kimmel (2005:13) mentions that the Internet has quickened the transmission of information around the world that as soon as a new approach to products, packaging, promotion, or communication appears, it can be copied by competitors and launched under their own brand elsewhere. 138 According to Mininni (2005) many marketers are beginning to realise that packaging is just as critically important to building brand equity and marketing ROI similar to advertising is. Yet corporate package design budgets are miniscule compared with advertising budgets. Mininni (2005) states that packaging that truly expresses a brand?s assets bring a far greater ROI than advertising. This is corroborated by research from brand consultancies, corporate statistics and independent research. Experts have affirmed that package design, as part of a brand identity system, can outperform up to three advertising campaigns and more than eight promotional cycles (Mininni, 2005). DECEPTIVE ADVERTISING Angioni (2010b) states that deceptive advertising occurs more often than we may think. Angioni (2010b) further states that there is some sort of deception in every advertisement that we see. A good example, is gym equipment infomercials or fat burning pill infomercials they always have people who are never fat or out of shape. These companies always hire muscle bound models and use them as an example of how you could look by using the machine or product. Angioni (2010b) continues to mentions that the machine or product is new and logically we can conclude that the model used on the infomercial did not get his/her physique by using their equipment or product. As such, the infomercial has just engaged in deceptive advertising by suggesting that the model?s body is a result of that particular workout equipment or product (Angioni, 2010b). According to Hamilton (2010) deceptive advertising occurs when business making directly or indirectly false claims. This need not be a blatantly false claim, as deceptive advertising can also include exaggerated or simply misleading claims as to the benefits of a product or service. Any form of incorrect insinuation as to precisely what a product or service offers falls in to the category of deceptive advertising. Hamilton (2010) further mentions deceptive advertising can be beneficial to businesses in the extremely short term but the damage it can do to businesses in the long term can be often irreparable. 139 Angioni (2010b) states that deceptive advertising causes many people to be taken advantage of; it also negatively impacts the economy. Customers tend to seek a refund since these products do not work. Angioni (2010b) further states that if a company refuse to give such a refund, there most likely will be a lawsuit filed against the company on behalf of the aggrieved customers. Branded retailers at times tend to misrepresent themselves which leaves consumer feeling deceived. Misrepresentation comes about when branded retailers make innocent misstatement or nondisclosure of facts. Consumers regard this to fraud since details presented are false. ADVERTISING BRANDS According to Elliott & Percy (2007:226) people think of brands as products that they buy such as Coke, Cadbury, Ford, Hoover, Persil, and Mars. Any product can be branded and that also includes services, corporations, retail stores, cities, organisations and individuals can also be branded, (Elliott & Percy, 2007:226). According to Long (2009) brand advertising has been considered to be the heart of any businesses success. People establish a relationship which can be of a personal nature to your brand, not your company parse. The best brands build an emotional connection with consumers, leading to customer loyalty (Long, 2009). Elliott & Percy (2007:49) state that advertising is one of the most potent sources of valorised symbolic meanings. According to Long (2009) a brand?s advertising success deals with establishing a connection with the consumer, by establishing your business or your product that will be known for quantity, something comforting which they can trust. Schudson (1993:90) mentions that advertising effectiveness depends on the amount and kind of product information is available to consumers. Schudson (1993) asks the following three questions: ? How prominent is the place of advertising in the consumers? field of information? ? How does the advertisement for Brand X compare to the advertisement for Brand Y? ? How both advertisements compare to the range of other information, some of it from non-commercial sources, that enters into consumers? buying decisions? 140 Skinner et al.(2007:56) aver that over R15 billion is spent a year in South Africa and it is regarded to the most economical method of communicating using one source to a mass audience in shortest space of time. Angioni (2010a) states that advertisements are helpful in creating interest in your company and in attracting potential customers to your doorstep. He further states that advertising also helps you ?brand? your company name and creates for your company a presence in the marketplace. By expanding your presence in the marketplace leads to a greater potential of increased sales and thus, an increase in profit. However, getting a customer or client to repeat his/her business with your company is the true key to success (Angioni, 2010a). Long (2009) mentions that some media lend themselves more readily to brand advertising than others, a comprehensive campaign of branding or re-branding will typically done across several different media. Print and television are usually the media of choice for brand advertising, including ads in publications, billboard and other advertising as well as ?captive audience? formats such as adverts on subways and buses. My Ad Base (2009) states that although print is the preferred medium of choice for brand advertising, there are certainly mediums to choose from. Long (2009) states that television is also regarded as a visual medium and it has the ability to make a powerful brand impact on consumers when used effectively. Long (2009) continues to state that regardless of the media chosen, simplicity is the best way to advertise your brand. A combination of print and television media brand advertising is generally a good media mix for a brand advertising campaign. Other marketing efforts can later contribute towards building your branding, but when you need to establish a presence for your brand, keep it simple will make the biggest impact (Long, 2009). My Ad Base (2009) states that television advertising is certainly a powerful way to transmit a brand image to consumers; using this medium presents another great way to build the emotional ties by which consumer?s favoured products. Both the print and television advertising contributes towards the building of strong brand identity. The use of other means to communicate the message of brands can equally make an impact in advertising. Long (2009) mentions that radio spots and online advertising can also add to the brand advertising campaign; while they usually are not a suitable substitute for the more traditional print and television placements, it is a valuable part of the branding. 141 CHARACTERISTICS OF GOOD BRAND ADVERTISING Blurt It (2009) states that every great advertisement is strategically sound which is carefully directed to a certain audience, it is driven by specific objects, its message is crafted to speak to that audience?s most important concerns, and it is run in media that will most effectively reach that audience. Blurt It (2009) further mentions that the measure of an advertisement?s success is how well the goals have been achieved, whether they are increased sales, memorability, attitude change or brand awareness. Skinner et al. (2007:61) list the following ten characteristics for good brand advertising: ? It is consumer orientated. ? It concentrates on one selling idea. ? It concentrates on the most important and persuasive one selling idea. ? It presents a unique and competitive idea. ? It involves the consumer. ? It is credible and sincere. ? It is simple, clear, and complete. ? It clearly associates the selling idea with the brand name. ? It takes full advantage of the medium. ? It makes the sale. Pasternak (2009) states that branding goes far beyond marketing. Success depend all aspects of your business reflecting the support for your intended brand. The most valuable assets you have are your people. They must be well-trained in articulating and in delivering your brand. An important step for service organisations is that they do not have concrete products. Their offerings deals with soft assets like knowledge experience and people (Pasternak, 2009). ADVERTISEMENTS INFLUENCE ON CHILDREN According to Jordan (2008) kids of this generation has more purchasing power. They are able to make more independent decisions about what to buy and where to buy it than generations past. Jordan (2008) further states that children?s market plays an important part to the branded retailers strategy not only to secure a sale with the young consumer but to also engage their parent/s. Products are introduced and only over a period of time or it is able continue captivate and influence does it really starts to become a brand. According to Jones (2005) a way that allows for the market to adapt to the fickleness of youth coupled with the necessity for short-term gain against long-term asset building. A way that allows everyone to 142 claim they have a brand, no matter its history or future. Finally it allows brands to migrate positioning as they develop. Jones (2005) continues to mention that brands, in the children market, can essentially be categorised as staples, fads, crazes or classics, where: ? Fad = Short-term craze ? Craze = Long-term fad ? Staple = Can be a fad or a craze or neither ? Classic = One or more of the above; here to stay Jones (2005) provides a Venn diagram in figure 15 to illustrate this combination. Figure 15: Venn Diagram Source: Jones (2005:http://brandchannel.com/brand) Jones (2005) explains each aspect that is found in the figure 15: ? A fad is something that tends to come and go very quickly. ? A craze comes and goes but should last longer than the fad. ? A staple defines the great many products that are essential and finally. ? A classic is a brand that has been one or all of the first three; a brand that is here for the long term, has long term strategies, has stood and will continue to stand the test of time. 143 Jones (2005) states that every market has its staples and that the same goes for the kids market. These are brands that do not need to be hyped in any way such as stationery or a cuddly toy. Every now and again a product will come along which can be defined as a staple but will develop into a fad and a craze. Pen variants such as the gel pens spring to mind. Kids love a craze; they create them after all. They do not like to admit anything they like is a fad; they willingly embrace it as a craze but as soon as it is there it has gone again. A fad is essentially a craze that just has not quite managed to take a longer-term hold on the psyche (Jones, 2005). Peer Pressure on Children Jordon (2008) states that young consumers are similar as adults and buying things make them to feel that they will make them feel better about themselves and more popular with their peers. Jordon (2008) avers that unlike adults, children and adolescents have fragile self- esteem, little self-control, and are willing to do almost anything within their spending power to fit in. According to Chan & Prendergast (2007:216-217) communication provides youth insight on what consumption values and products are acceptable in the eyes of their significant others. The information provides a base for social norms about consumption values. Parents who engage in socially oriented communication provide their children a perception to evaluate their consumer behaviours in the basis of the perceived effects on others, which results in social comparison with friends (Chan & Prendergast, 2007). Jordon (2008) further mentions that advert attract young audiences to pack snacks that will make them the envy of their friends and to eat fast food because it will be an enjoyable family experience. Although this may be the case of a child becoming the envy of other children, it may cause difficulties for the child. Some of these difficulties may be staying away from school or refusing to socialise with his or her peers. Bulling in schools also add difficulties and children without branded clothing could end up as victims of this. According to Gilbert (2008) children who are unable to afford to buy the latest brands and fashions face bullying and ridicule by their peer. Bousted in Gilbert (2008) stated that bullying of this kind can be quite insidious, it can just be a look that a child is given. Bousted in Gilbert (2008) further states that children feel under immense pressure to look right and 144 having the key brands is part of that. Advertising and marketing have made our society increasingly image-conscious and our children are suffering the consequences. Schools and colleges should be places where all children feel equal, but it is virtually impossible for schools to protect their pupils from the harsher aspects of these commercial influences (Bousted in Gilbert, 2008). Jones (2005) states that young viewers or readers like to engage with what is in front of their eyes. They are adept in knowing what is programming or written articles and differentiating that from advertising, promotions and sponsorship. We should resist all calls that try to ?overprotect? our kids from commercialism, as it is a fact that they are far more discerning, cynical and more likely to dismiss approaches from advertisers than are their parents. Jones (2005) further states that kids are smart; they know their way around; they learn from each other. (Why else are they the ones helping us with the new technology, not the other way round?). Seeco (2007) states that young people determines the symbolic meaning of the brands selected. The meanings attached have no real connection or relationship with what was originally intended by the producers of these products. The All Star Converse sneakers have a close association with the gangs, ?tsotsis? and ?amagents?. It is also becoming very common for fashion conscious people who now live in the suburbs who are not gangsters to wear these sneakers. Many find a sense of belonging or connection with the communities they come from. It also provides a sense of individuality within a group that sees itself as upwardly mobile and successful. According to Loubser (2008:9) YouTube is but one of the countless user-generated websites frequented by youths. The impact of all this content at their fingertips has exposed youngsters to a vast spectrum of opinion. It is not surprising, then, that they have become familiar with sharing and exchanging information. Loubser (2008:9) states that in light of this, companies cannot afford to hide anything. The youth market is far from being brand loyal. But, there is no doubt that it is a very brand aware or conscious market. The preference for popular and very upmarket brands is very high in this market (Seeco, 2007). 145 CAUSE-RELATED MARKETING AND ADVERTISING Landa (2006:16) states that funding for various non-profiting organisations are usually undertaken by brands and corporations which raise funds for them. There many examples that we can attached this to for an example: the Absa group engages in various CSR and CSI initiatives which deals with fund raising. Niyonzima in Naidoo (2008:92) states that the Absa group has a well-developed, integrated, CSR programmes accompanied with a history of staff involvement in community development programmes. The employees have frequently raised funds internally on their own accord for various charities. Potential consumers are observant of branded retailer?s visibility that makes a difference within the community. Socially Responsible Investment According to Investopedia (2010) an investment that is considered socially responsible because of the nature of the business the company conducts. Common themes for socially responsible investments include avoiding investment in companies that produce or sell addictive substances (like alcohol, gambling and tobacco) and seeking out companies engaged in environmental sustainability and alternative energy/clean technology efforts. Socially responsible investments can be made in individual companies or through a socially conscious mutual fund or exchange-traded fund (ETF). Du Plessis & Rousseau (2007:13) state that social responsibility in marketing compass a diverse range of issues, including the concept of consumerism. Greentising Today some of the buzz words among branded retailers in their advertising for their brand are: Recycling, Go Green, the Green Bank, Green Technology and many other such words. Retailers want to be seen as environmentally friendly and therefore they want embrace environmental awareness. Stern & Ander (2008:31) state that Greentailing 2.0 is defined as saving the environment but places conscience retailer at the forefront of all business activities. Stern & Ander (2008) further state that Greentailers activity seek to sell products and services while minimising the impact on the environment and to adopt operating practices that minimise waste. This is more than simply carrying ?green? products it often involves substantial supply chain work to meet green standards and ensure that green products can be competitive on the shelf. Progressive Greentailers are leading the charge in 146 proactively changing their business practices to be more responsible global citizens (Stern & Ander, 2008). GREENWASHING According to Stern & Ander (2008:40) retailers must be cautions of the pitfalls of greenswashing. Greenwashing is the act of misleading consumers about an organisation?s environmentally friendly practices, products, or services. However, consumers are savvy enough to catch on, especially if the message is inconsistent with the overall experience. Watchdog groups monitor the sincerity in green messaging (Stern & Ander, 2008). According to Stern & Ander (2008:40) there are a number of ways to be green and provides four key elements for successful the Greentailer: 1. Think green: this a word used a lot in company mission statements and CSR reports are sustainability. What sustainability means to consumers is difficult to define and Greentailers often create their own definition of how it pertains to their business. 2. Act green: A tangible way to convey greenness is through the infrastructure in which you operate. Several retailers have taken to build and/ or retrofitting stores to optimise energy efficiency and through in-store marketing point out these efficiencies. 3. Sell green: just as determining what makes a retailer green is difficult, so is creating an understanding of what constitutes a green product. In fact any criteria used to create green seem subject to their own debate. Every word is loaded and there is no shortage of controversy. 4. Convey green: like the awakening of individual consciousness toward the environment, corporations are also receiving wake-up calls or are proactively attempting to change their paths. Obviously, CSR extends well beyond the environment. A utopian, if unachievable definition of CSR would mean assuring that the end consumer can have confidence that no person and no place are negatively impacted by the products and services for sale. For a Greentailer, CSR is communicated through its stores, its products, and its people. 147 CONCLUSION This chapter provided the various concepts that the branded retailer uses in brand marketing and advertising. The chapter surveyed how branded retailers engaged new technology and traditional media to advance their segmentation. One of the current aspects that branded retailers is engage in the ?Green Concept?. Branded retailers are becoming more and more aware of the environment. The use of youthful strategies is an attempt to capture a younger generation of consumers. However, branded retailers must ensure that they do not mislead the young consumer. The young consumer is very aware whether the branded retailer is ?green? or if they contravene on working conditions of their employees. The young generation is able to expedite communication of their likes and dislikes through social media and can easily either cause the branded retailer to gain or lose customers. The next chapter focuses on South African branded retailers and how they contribute towards community development and with a specific focus on the rural sector. 148 C h a p t e r 6 SOUTH AFRICAN BRANDED RETAILERS INTRODUCTION The previous chapter outlined concepts that influence the consumer through brand marketing and advertising. The use of new technology such as social media presents an overview of how branded retailers can advance their presence in the market place. In South Africa there are a variety of brand retailers. They operate in different demographical settings engaging all types of consumers. The chapter overviews one branded retailer from each of the following categories: Supermarket, Financial service providers, Fast food, Clothing store, Cellular service providers and concluded with the Proudly South African brand. Brands influence the social fibre of our communities. People use brands to up their social standing. Biz Community (2009) states that the top 100 global brands have constantly indicated that a brand can be an organisation?s greatest strength. Branding must be regarded in this manner, particularly here in South Africa where the approach of soloing it in the marketing department still prevails (Biz Community, 2009). Gillingham (2010:1) states that South African consumers have become more discerning about the products on which they are prepared to spend their hard-earned money and they have no hesitation in expressing themselves if products fail to deliver. On the other side of the coin, consumers are very loyal to products that consistently proved their worth (Gillingham, 2010). RETAILER Business Dictionary (2010a) states that retailers include large businesses such as Wal-Mart, and also smaller, non-chain stores run independently such as a family-run bookstore. Erdem et al. (2004:86) state that retailers stock their own store brands, or private label, many consumers purchase these brands and by doing so it enjoys a part of the product category. 149 Branded retailers are organised and operate multi-national network. Too et al. in Guenzi (2009:291) mention that consumers develop multiple relationships that, taken together, can contribute to loyalty building. These are relationships with the store, with front line employees (example, sales associates) and especially in the case of grocery markets, with store branded products. Ailawadi & Keller in Grunert et al. (2006:598) states that despite the growing importance of retailer brands and the focus on optimising assortments, little is known about how consumers perceive the brand architectures of food retailers, much less about what brand architectures they prefer. BRANDED RETAILER?S COMMUNITY DEVELOPMENT According to Gilchrist (2009) community development is about interacting with people to assist them to find ways to build understanding and co-operation between individuals or a group. Community development provides members of community with relevant assistance so that they can make changes in their own lives and for the greater good. Smith in May (2006:13) states that businesses need communities in order to survive and prosper. Communities provide various types of labour and customers which the company requires. Communities rely on the business sector for employment, living income and services. Partnerships are important, especially when the project is a long term venture (Smith in May, 2006). According to the Community Development Exchange (2010) community development deals with the premise that within any community there is a wealth of knowledge and experience that they may have but not realise. This can be used in creative ways, which will engage in high levels of participation and can be channelled into collective action for communities? and individuals to achieve desired goals. Funkey (2009:23) states that social sustainability means making branding and business choices that improve the quality of life in our communities. It means adopting ethically sound trading practices that facilitate development and enable self-sufficiency among small suppliers. According to Marsden (2005:441) a crucial part of sustainable development deals with sustainable wealth creation, or what we might regard as value capture. This requires that social and entrepreneurial initiatives be merged with respect for ecological, human, social and manufactured capital (Marsden, 2005). 150 CSI has become a platform in which branded retailers can use to engage their publics and demonstrates their commitment in nation building. According to Merry in Verwey (2000:52) organisations must survive in a world of accelerated change, in an intertwined global village, powered by breakthroughs in technology. Sustainability has become an essential feature of adaptive corporations because of the complexity, instability and uncertainty of times (Verwey, 2000). Naidoo (2002:126) states that corporate and social responsibility is about the integration of social and environmental strategies into the core business of a company. Naidoo (2002) further states that the existence of those companies will be sustainable in more than financial terms. According to De Wet (2006:62) successful companies assume a role in contributing to the sustainable development of society. Funkey (2008:23) states that values are changing and brands change too, change allows for a brand to remain relevant to a changing audience that wants to contribute to a better world. There is always a need to look at sustainable solutions to building ethical brands, and what better place to start than with our own uniquely African context (Funkey, 2008). SUPERMARKET According to Karolefski (2002) supermarkets may be considered to be in the food business but now they are also in the media business. They are able advertise and promote the store, customers receive hundreds of brand messages from them. A supermarket is a large self-service retail market that sells food and household goods. Supermarkets are all the time increasing their product range to ensure that they become a one stop under one roof shopping experience. Esbjerg (2009:414) states that modern grocery retailers set relatively well-defined material and symbolic boundaries for consumer choice. This contrasts with the traditional view of the modern supermarket as the ultimate arena of the consumer?s free choice (Esbjerg, 2009). 151 SHOPRITE BRANDS According to Shoprite Holdings Limited Annual Report (2010) Shoprite is aimed at middle- to-lower-income consumers it has never, in good times or bad, deviated from its positioning of consistently providing the best value at the lowest prices, which has brought a high level of loyalty among members of its target market. Shoprite?s customer base continues to grow. Shoprite target area is the middle to lower-income consumers so that they can provide everyday low prices with a basic food offering (Shoprite Holdings Limited Annual Report, 2010). Staiti & Valpuesta (2010) mentioned that Shoprite Holdings Limited is South Africa?s largest retailer. Sales for the year ended June rose 14% to about 67.4 billion rand ($8.9 billion) after it opened more stores. According to Shoprite Holdings (2008a) the chain of Shoprite stores is the main business of the group and as a main brand it is the biggest business unit. The Shoprite retail brand is used predominantly outside the borders of South Africa spearheading the Group?s growth into new markets. Economist Intelligence Unit Limited (1997) states that Shoprite Checkers has become South Africa?s largest retail chain in terms of turnover after its takeover of the loss-making OK Bazaars. Shoprite Organisation According to FMCG Direct (2005) Shoprite is Africa?s largest food retailer, operates more than 1068 corporate and 275 franchise outlets in 17 countries across Africa, the Indian Ocean Islands and southern Asia, and employs more than 75,000 people across 9 trading and 7 operational divisions. FMCG Direct (2005) states that Shoprite Holdings Limited as the following entities: the Shoprite Checkers supermarket group, which consists of Shoprite supermarkets; Checkers supermarkets; Checkers Hyper; Usave stores; distribution centres supplying group stores with groceries, non-foods and perishable lines; OK Furniture outlets; OK Power Express stores; House & Home stores; and Hungry Lion fast food outlets. Through its OK Franchise Division, the Group procures and distributes stock to OK Mini Mark convenience stores; OK Foods supermarkets; OK Grocer stores; Megasave wholesale stores; OK Value stores and Sentra stores and buying partners. Figure 16 provides the organisational make-up of the various retail brands under the Shoprite Group. 152 Figure 16: Shoprite Holding Source: FMCG Direct (2005:http://www.fastmoving.co.za/retailers/shoprite) CHECKERS According to Shoprite Holdings Limited Annual Report (2009:4) Checkers is the major brand after the Shoprite brand. Checkers operates its stores throughout South Africa and other countries in Africa. Shoprite Holdings Limited Annual Report (2009) further states that the Group mainly focuses more strongly on fresh produce and offer a wider range of choice food items to a more affluent clientele. Checkers has become a preferred shopping destination for consumers that are time-pressed. Shoprite has developed its lifestyle departments with a variety wine, cheese and meat making it easier for customers to select. Shoprite Holdings Limited Annual Report (2009:11) states that the Group?s three retail chains constituting the South African supermarket division performed well, with the turnover and customer growth in repositioning Checkers a success story. 153 Checkers CSI Initiatives Shoprite is a company that is established throughout Southern Africa and in South Africa it engages its publics through CSI programmees which assist in community building. According to Supermarket & Retailer (2009) state that Shoprite?s corporate responsibility and sustainability report is quite active and predominantly focused on South Africa where they have a number of CSI projects running, but within the SADC region they are conspicuously silent about CSI efforts. EMPLOYMENT Shoprite Holdings Limited Annual Report (2009:11) states that the business growth allowed as to create an additional 10 493 employment opportunities for hundreds of thousands of South Africans were losing their jobs, with the Group employing almost 84 000 people at the end of June 2009. These new recruits were made up of 38 deaf people who were previously unemployed and who, after a tailor-made Sales Skills Programme, became employed in Checkers stores in Gauteng. The Group currently employs 1747 staff with post grade 12 qualifications compared to 1306 a year ago (Shoprite Holdings Limited Annual Report, 2009). WOMEN OF THE YEAR AWARD Shoprite Checkers launched the Women of the Year Award for South Africa in 1996. Shoprite the Women of the Year initiative was placed on hold for a year in order to focus on launching a national feeding programme assisting the poorest of the poor communities. The Group focused on alleviate the plight of those in less privileged sectors of society. These people were struggling in the tough economic climate provided relief for children and senior citizens, as well as the thousands of people affected by job losses (Women of the Year, 2010). According to Women of the Year (2010) the Shoprite Group decided to once again enforce its commitment to the women of our country and launching a new award to celebrate South Africa?s most outstanding women. The new award will reward exceptional women who have achieved in their own fields and made an impact on the future of their fellow South Africans. The new award moved away from just one person to five, it was decided five women will be selected, one in each of five categories of social importance: ? Health Care-Givers, ? Corner Shop to Big Business Makers, ? Educators, ? Good Neighbours and 154 ? Youth Movers THE SHOPRITE CHECKERS STROKES OF GENIUS PROJECT According to Shoprite Holdings Limited (2007) the Strokes of Genius project first launched in 2007 with a focus on the promotion of emerging painters. Shoprite Holdings Limited (2007) states that the best artworks from emerging young artists who submitted their paintings online were auctioned off at an auction in November 2007. The painting was successfully sold, with two artworks fetching R30 000 each - the highest closing bid for emerging artists. Shoprite Holdings Limited (2007) mentions that through the recognition gained from their involvement with Strokes of Genius these two artists have gone on to become successful public artists in their own right, exhibiting their works, on invitation, in well-known South African galleries and art events. HIV/AIDS AWARENESS Shoprite Holdings (2008b) The Group continues to intensify its educational campaign aimed at staff to combat a pandemic which is responsible for more than 40% of all deaths in South Africa. Although there are early indications that the incidence of HIV/AIDS is not only levelling out but also starting to dip, the fact is that 5.4 million people are infected with HIV/AIDS, most of them in economically active age groups and most of them women (Shoprite Holdings, 2008b). According to Robinson (1999:15) CSI has a major role to play in our nation. The corporate sector is fundamentally committed to external communities. The escalation of HIV/Aids in the work environment and across communities has placed companies into wider social problems. The Group continues to intensify its educational campaign aimed at staff to combat a pandemic which is responsible for more than 40% of all deaths in South Africa (Shoprite Holdings Limited Annual Report, 2009:35). According to Robinson (1999) South Africa is a growing economy, a country which will remain labour intensive for many years to come. Robinson (1999) further states that the consequences of HIV/Aids are staggering, taking into account the fact that government tends to underestimate the seriousness of the disease and the impact that it places on business and the economy of South Africa. Shoprite Holdings Limited Annual Report (2009:35) states that although there are early indications that the incidence of HIV/Aids is not only levelling out but also starting to dip, the fact is that 5.4 million people are infected with HIV/Aids, most of 155 them in economically active age groups and most of them women (Shoprite Holdings Limited Annual Report, 2009). Food Safety Department of Health (2010) states that food safety is an increasingly important public health issue and according to the WHO, governments all over the world are intensifying their efforts to improve food safety. Department of Health (2010) further state that the globalisation of trade in food is one of the challenges, which needs to be addressed to ensure food safety and the protection of a country?s consumers against foodborne diseases. The Group ensures that it prescribes to Consumer Protection Act which deals with food safety. This ACT is regulated by CGCSA (Department of Health, 2010). Shoprite Holdings Limited Annual Report (2009:36) states that the Group?s approach to this is a crucial aspect of its business. In the past responsibility for food safety devolved mainly on the manufacture, the retailer will, in terms of the new legislation, be fully responsible for the safety of the products s/he sells. It will be compulsory on him or her for the retailer to either audit the manufacturing processes of suppliers to ensure they meet all prescribed requirements (Shoprite Holdings Limited Annual Report, 2009). TRAINING AND DEVELOPMENT Shoprite Holdings Limited Annual Report (2009:33) states that the Group strives to create a healthy balance in providing training and development opportunities to both the employed and the unemployed. Training for unemployed is aimed at supporting the National Skills Development Strategy and contributes to job creation within the retail sector. Shoprite Group of companies will be committed to invest both time and money in successful candidates who wish to build a secure future, and acquire a prestigious financial qualification with Africa?s largest retailers (Job List South Africa.com, 2010). Campaigns According to Shoprite Holdings Limited Annual Report (2009:36) the Shoprite Group sees itself as a responsible corporate citizen contributing on an on-going basis to the wellbeing of the communities where it does business. Its social-investment programmes focus on a number of areas, but their main focus on woman, children and senior citizens. Shoprite and Checkers conduct a number of community campaigns that provide opportunities for the disadvantaged 156 people and for those live in rural communities (Shoprite Holdings Limited Annual Report, 2009). TOY 4 TOY CAMPAIGN Shoprite (2008a) states that Shoprite and Checkers annually provide toys for the less fortunate children in South Africa. Shoprite and Checkers therefore teams up with Child Welfare South Africa for the TOY 4 TOY campaigns that urges consumers to donate new or used toys to less privileged children. For every toy that consumers donate towards this campaign, Shoprite Checkers matches it with a brand new toy. GOLDEN TROLLEY According to Shoprite (2008b) Shoprite and Checkers continuously embarks on community orientated Golden Trolley collection campaigns. Consumers are urged to donate items such as blankets, non-perishable food, clothes and books for communities in need, especially in case of disasters, such as the Haiti earthquake, as well as local floods and fires. These items are then distributed to the communities by a national intervention society on behalf of Shoprite (Shoprite, 2008b). KAAPSE KLOPSE Shoprite (2008c) states that Shoprite sponsors a Kaapse Klopse troupe called the Pennsylvanians. The group of musicians and performers are members of the Cape Town Minstrels Carnival association and practice for months to take part in the competitions that are held during the festive season. Shoprite is proud to say that the Pennsylvanians has won the Carnival competition 11 times in a row. Shoprite has been a long-standing member of the Kaapse Klopse community, and because of their commitment to the community, they also hand out free meal vouchers for the day during the Kaapse Klopse parade in Cape Town every year (Shoprite, 2008c). MOBILE SOUP KITCHENS According to Shoprite (2008d) the Shoprite feeding programme provides assistance to the poorest communities in South Africa. Shoprite distributes soup to alleviate the plight of especially children and senior citizens, as well as the thousands of people affected by unemployment. Soup trucks are also sent to areas that are affected by natural disasters, such as floods, in a relief effort. The project launched with two mobile kitchen units serving 157 Gauteng and the North West Province. Eight new trucks were received in June 2009 which expanded the project with two further mobile soup kitchens in each of the Western Cape and KwaZulu-Natal provinces and one each in the Free State/Northern Cape, Eastern Cape, Limpopo and Mpumalanga provinces bringing the total to 10. Shoprite (2008d) avers that the Group estimates that through this national feeding programme it will distribute 150 000 meals of nutritional soup and bread per month to help improve the nutritional status of the people of South Africa. Royco, Toyota South Africa, Volkswagen South Africa and Mercedes South Africa have joined Shoprite to support the feeding initiative (Shoprite, 2008d). Shoprite/Checkers has established itself and move from South Africa to Africa and is doing well. According to Ballantyne (2008) Shoprite are the largest retailer in Africa and dominate the continent. As a branded retailer it is indeed is serious about its current market segment and also looking at ways to increase it. Checkers is very community orientated and contributes to nation construction. FINANCIAL SERVICE PROVIDERS South Africa has many financial service providers that provide finance to the consumer. The main function deals with the management of money matters. In South Africa we have four major retail banks (Absa, First National Bank, Standard and Nedbank) and there other retailers that also engage consumers and provide financial service such as insurance companies (Old Mutual, Sanlam, OUTsurance and others). Many clothing stores such as Edgars, Woolworths and others also provide financial service to their consumers. ABSA BRAND According to Irwin (2002a) key marketers compares the bank to a person, and arrived to the following assumptions following: progressive, innovative, intelligent, approachable, caring and human. Irwin (2002a) further mentions that using these qualities as a guide, Absa?s motto became ?Today, Tomorrow, Together? a slogan that attempts to promote the solidity of the brand as well as the employees? commitment towards their customers. Absa provides many financial solutions to the corporate, small businesses and to the individual person. 158 Superbrands (2005a:13) aver that Absa has positioned itself as a truly South African brand, dedicated to the key values of being progressive, inspirational and approachable. According to Niyonzima (2003:2-3) Absa Group is one of the major financial service providers in South Africa and have also made a significant foot print into Africa. Absa provides a full range of retail and corporate banking, insurance, financial and property services through extensive local and international networks. Absa employs 34 000 employees and operates approximately 600 outlets nationwide. Irwin (2002a) mentions that Absa renovated its inherited branches with a facelift and formed a corresponding new logo that was modern and more youthful. The colour was also a loud, fire engine red, a nod to two of the most well-known brand names in South Africa such as: Coca-Cola and Toyota. Bruwer in Irwin (2002a) points out that this new design helps promote a ?younger energy?. Sinclair (2010) states that brand people like to think Barclays bought 57% ownership of Absa because they recognised the value of the brand. It is more economical to buy a brand with established equity, than to pay the very high price of building it from scratch. Sinclair (2010) further mentions that Absa is well established, has high levels of awareness and most people think, as banks go, it is not too shabby. Why then did Barclays place such a low value on the brand? According to Gilmour (2008:3) all the major banks have been pulling out the stops to keep customers, but it looks like Absa is doing it better than the rest. Part of this may be due to huge awareness of the ?Red Bank?. Everywhere, be it sport, TV, in the media. Absa is there, reinforcing consumer?s attitudes to the bank and the brand (Gilmour, 2008:3). According to Irwin (2002a) initial research revealed that over 90% of customers who belonged to the banks that were to fall under the Absa banner would remain with the group. Capitalising on this good fortune, the brand managers at Absa focused on providing personalised client service, and stressed to their employees that this service was to extend to every level of the bank (Irwin, 2002a). ABSA CSI The Absa Foundation has contributed towards meaningful job creation in the past financial year to an amount R3.7 million. The purpose is to engaging community members in various initiatives which provide practical skills training, beginner?s capital and equipment. In order to ensure success and on-going sustainability, the bank has also provided after-care support 159 and mentorship (Absa, 2005:20). Niyonzima (2003:2-3) states that Absa Foundation is the community development and social investment arm for the company. It operates as a Trust funded annually by 2% of the dividend declared. Since its inception during 1994, the Group contributed more than R79 million to more than 300 projects. The group realised R1888 million in headlines earnings in 2002 and a total of R35 million was spent on corporate social investment (CSI). Niyonzima (2003) further states that R4 million is allocated to the Absa Foundation each year to fund its core operational activities. The key focus areas are early childhood development, teacher training in mathematics, science & technology, support for community job creation programmes and HIV/Aids. According to Irwin (2002a) the Absa Foundation focuses on job creation, education and health improvement in poor areas around South Africa. Absa also sponsors several regional events and all proceeds go towards charity. The following figure describes Absa?s framework for CSI. Figure 17: Framework ABSA CSI Source: ABSA Annual report. ABSA COMMUNITY DEVELOPMENT The Group has a well-developed, integrated, CSI programme and a history of staff involvement in community upliftment programmes. According to Absa Annual Report (2009) Absa is committed to improving the lives of South African communities through its 160 CSI initiatives. The aim of these projects is to stimulate social and economic upliftment. According to Niyonzima (2003:2-3) the employees have regularly raised funds internally on their own accord to assist various charities. Some these charities for an example, World Aids Day fund raising initiatives through strategically placed money boxes to raise funds for children infected and affected by HIV/Aids. They also sold stickers for Casual Day, which also contributed largely towards persons with physical disabilities. Through these two fundraising projects, the employees have raised approximately 5.7 million Rand (Niyonzima, 2003). Absa?s peers have nominated them as a company that has the most hands-on approach to community development activities (Absa, 2005:2). Absa?s CSI programme is strategically aligned with its business goals, while supporting the nation?s social development imperatives. The heart of the company?s people-centred vision is a commitment in helping individuals and communities to build sustainable homes. Irwin (2002a) states that brands are similar to people, they have personalities and form relationships. Relationships are not forged between companies but they are the result of the people interaction. The comprehensive CSI programme of Absa is a powerful vehicle that is used to achieve this endeavour (De Wet, 2007:214). The Absa Group is a financial institution which is committed to support the Government?s mandate to reduce poverty by the year 2014. The institution has aligned its CSI programmes with Government?s socio-economic policies including the AsgISA and Jipsa (De Wet, 2007:214). Irwin (2002a) states that another ground breaking has been the formation of The Nation?s Trust, a partnership between Absa and England?s Prince?s Trust. Patrons of the Nations Trust are none other than Former South African President Nelson Mandela and England?s Queen Elizabeth II; it is designed to encourage grass roots entrepreneurship. Irwin (2002a) further states that these projects and others like them have earned Absa the distinction of South Africa?s Most Caring Corporation by the South African Corporate Care Check. EMPLOYEE COMMUNITY INVOLVEMENT (ECI) According to Absa Annual Report (2009) Absa?s employee community involvement (ECI) programme gives employees the opportunity to get involved in improving the quality of life of fellow South Africans. Absa?s internal CSI initiatives include the following: 161 ? Executive and senior leadership community initiative programme. As a leading company, Absa encourages its managers to get involved in economic development and social upliftment. Senior staff members are also encouraged to get employees involved in volunteer work; ? A ?Matched Giving? fund aimed at matching any fundraising or volunteering by staff; ? A voluntary payroll giving programme, Give as You Earn. In 2009 R816 000 was raised by employees and matched rand for rand by Absa; ? Employee Volunteer Week; ? Community development facilitated by business units; ? Volunteering and fundraising initiatives for the family members of employees through the Se?ego Cares programme. According to Niyonzima (2003:3) Absa?s social mission is to increase partnerships by providing financial and other resources to disadvantaged communities to ensure their sustainable development. Absa staff members play an important role in community development programmes. Absa is proud to support staff-initiated community projects. Staff members volunteer by offering their personal time, skills and resources (De Wet, 2007:214). Niyonzima (2003:2-3) states that Absa recognises the efforts of its staff by matching the cash donations raised, donations in kind, and time and skills volunteered by the staff through the ?Match Fund Give as You Earn? programmes that are conducted internally. Staff members are free to participate in any CSI activity through any Absa Business Unit. Staffs are also at liberty to choose the projects they intend becoming involved in. Niyonzima (2003) further states that the aim of the programme is to create social awareness and encourage social responsibility amongst the Absa employees. Such involvement also contributes to Absa?s strategic business goals. This also provides employees motivation and retention which contributes towards building leadership skills and corporate reputation. Absa Annual Report (2009) states that their flagship programmes in 2009 consisted of large- scale, best-practice projects, typically national and they aim to provide viable and sustainable solutions in response to national priorities. According to Absa Annual Report (2009) their underlying philosophy is to establish partnerships with key organisations who are experts in a particular field. Absa Annual Report (2009) further states that they offer holistic and practical models to address the priorities. 162 Flagship programmes are funded at a high rand value to obtain maximum reach and impact. In 2009 the following five flagship programmes were implemented: ? Orphaned and vulnerable children programme partners; ? Big Fish Entrepreneurship; ? Beyers Naud? Schools Development Programme with Kagiso Trust and the Department of Education; ? Casual Day with the National Council for Persons with Physical Disabilities in SA; ? Absa/ Sowetan Early Childhood Development Awards. CASUAL DAY Irwin (2002a) states that the bank will, from time to time, promote ?casual days? where workers buy stickers that allow them the privilege of shedding their corporate garb and coming to work in jeans and sweats for the benefit of the South African Association for the Physically Disabled. Niyonzima (2003:4) states that Absa engages its branch network to support the National Council for Persons with Physical Disabilities (NCPPDSA) where money is raised by means of the Casual Day campaigns. Through this process Absa was able to raise R2.3 million, R900, 000 (16%) more than what was raised in 2001, and 40% of the total funds collected through the Casual Day projects. Absa participated in Casual Day programmes for the past 5 years. The campaign is regarded as an effective means of raising funds and awareness for the physically disabled and for Absa (Niyonzima, 2003). WORLD AIDS DAY The Absa bank is one of the largest financial service providers in South Africa and Africa. Absa is heavily involved in CSI project for communities and its approach to CSI is driven by the need to build a strong nation. Absa believes that CSI is not only an economic and political imperative, but also a business imperative. Absa believes that it can only thrive to be profitable business entity if all social and health needs of the communities in which the organisation operates are met (De Wet, 2006:288). According to Niyonzima (2003:5) World Aids Day 2001 works in collaboration with the Nelson Mandela Children?s Fund. The programme?s objectives were two-fold: To communicate to the publics that Absa as a bank is earnestly taking a stand against the fight against HIV/Aids and secondly to fund-raise for the Nelson Mandela Children?s Fund for Aids orphans. Absa received recognition as a Lifetime Founder?s Club Member of the Nelson Mandela Children?s Fund (Niyonzima, 2003). 163 Niyonzima (2003) further states that in 2002, Absa, in partnership with its media partner (SABC) embarked on a campaign themed ?We need Change?. The project was designed to make a difference together, by collecting coins from the public in all Absa branches. These funds were allocated to the HIV/Aids Care Givers and children affected and infected with HIV/Aids. The profile of Absa being a progressive, approachable and caring organisation has been the position of Absa as the Aids champion in the financial services sector. Niyonzima (2003) states that the success of this project was attributed to a partnership between the official media sponsor, SABC TV and Radio, assisting in creating the awareness. Apart from the TV and radio airtime, the Caxton Group of Newspapers assisted in communicating the information to the communities (Niyonzima 2003:5). According to Absa?s (2005:24) states that the Absa Foundation has taken a decision to focus its health and HIV/Aids interventions on supporting community-based projects in two areas of operation. Firstly, the support is for those who are committed to improve the quality of life caring for the infected and affected persons in community. Secondly to offer support for individuals who build capacity in the community by caring for the infected and affected people. Absa was able to use these two areas for the Foundation which resulted in 49 HIV/Aids projects that focus on the areas of: ? Education and awareness ? Counselling ? Home-based care ? Assistance to Aids orphans ? Income generation GIVE AS YOU EARN According to Niyonzima (2003:3) Absa uses the Give as You Earn programme to engage their employee and receive consent from to take a part of their salary to be is deducted from their monthly income. The fund supports a just cause agreed upon by staff and management. Absa was the first company in South Africa to have a matched Give as You Earn programme for its staff. Niyonzima (2003) states that the concept of ?Give as You Earn? was introduced to Absa by Charities Aid Foundation Southern Africa (CAFSA). They are Absa?s partner in this project and administer the distribution of the money to the beneficiaries. This practice enables employees of Absa to give directly from their gross salaries to a good cause in a safe and regular manner. 164 Niyonzima (2003) further states that the programmes indicated the various ways employees could become involved in charitable and development work. The various avenues include employees involvement in raising funds, providing equipment or other resources such as clothes, food, toys, and paints or employees could becoming directly involved with the activity. EARLY CHILDHOOD DEVELOPMENT (ECD) Absa (2005:4) states that HIV/Aids, poverty, lack of access to service, poor education and various forms of abuse and neglect indicate that many South African?s children face an uphill battle in the struggle of life. Absa supports programmes that are designed with holistic education dealing with care and development needs of young children. The Sowetan ECD Awards, initiated in 2003, has create a sector of highly skilled and motivated ECD practitioners as well as promoting and recognising excellence in the ECD sector (De Wet, 2007:15). ORPHANS AND VULNERABLE CHILDREN (OVC) According to the Absa Annual Report (2009) this programme addresses the needs of Orphaned and Vulnerable Children (OVC), Absa partnered with five NGOs in 2009: ? The Olive Leaf Foundation (Eastern Cape), ? World Vision (Limpopo), ? Wola Nani (Western Cape), ? Starfish Great hearts Foundation (North West) and Johannesburg Child Welfare (Gauteng). According to De Wet (2007:218) South African households face extremely harsh socio- economic conditions. Life for the majority of our children is a daily struggle against poverty and the indicator still remains to be inequality and exclusion. Rapid urbanisation, slow job creation and the multiple impacts of the HIV/Aids pandemic are deepening poverty from many instances; children are the most vulnerable in any society (De Wet, 2007). 165 Absa (2006:18-19) states that the context of the HIV/Aids pandemic, the increase of orphans and child-headed households is arguably the biggest long-term challenge facing South Africa?s socio-economic development and stability. The company has consequently identified the plight of orphans and vulnerable children as a critical issue to support. Through its Aids campaign for OVC, Absa is able to provide sustainable support to child-headed households across South Africa. Absa (2006) states that Absa partnered with World Aids Day to fight against HIV/Aids, making a strategic decision to support child-headed households through its annual Aids campaign. Absa is committed to its CSI projects to build the nation of South Africa. Absa Annual Report (2009) mentions that sustainable support are provided for nearly 2000 children who living in households where the head of the house was elderly or had not yet reached adulthood. Following a review of the programme, the Group increased funding to the five partners, enabling them to substantially increase the services they offer. Absa Annual Report (2009) states that their programme focuses on providing all-round support to the families in the form of: ? A monthly food parcel; ? Trained caregivers assigned to the households to; ? Care for and monitor the children; ? Monthly home visits to deliver food parcels, ? Assess the environment and health of the recipients and ? To listen to any comments from the children; ? Access to an after-school community centre with hot ? Meals and a place to do homework; ? Help in registering for a social grant; ? Referral of children to relevant services, for example, ? Health and social security; ? School fee exemptions; ? Monthly contact by care-workers with the school to monitor progress; ? Psychosocial support and counselling services; ? Encouraging children to learn how to grow their own food. Through this initiative, Absa supports children with a total investment in the programme of R2 million in 2009. 166 BIG FISH SCHOOL OF DIGITAL FILMMAKING According to Absa Annual Report (2009) Big Fish helps unemployed young people by providing training in filmmaking industry of South Africa. The goal is to provide skills to ensure employment after completion of the course. Big Fish has achieved an 80% employment success. The film-making school offers ground breaking initiatives in skills development. The school?s methods include intensive, hands-on training in a simulated workplace experience. In 2009 Absa supported the training of 20 young people (18 to 35 years old) from various provinces. They obtained a certificate in audio visual production at NQF 4 level. The course included research, proposal writing, scriptwriting, production processes, Administration, production budgeting, directing, camera, Sound, editing, conceptual thinking and consequential reasoning. Life skills were also taught (Absa Annual Report, 2009). According to Big Fish (2010) the South African government?s main thrust focuses on poverty reduction. The current administration has committed to immediate action to reduce the impact of the global economic downturn on the most vulnerable. Big Fish (2010) further mentions that government has recognized the importance of the film & TV industry: ? Treasury identified film and TV as an important growth sector ? as part of the 7 Pillars of Economic development. ? The Accelerated and Shared Growth Initiative for South Africa (AsgiSA) has identified. The Film & TV sector as key to assist government in reducing unemployment, inequality and poverty. ? Scarce skills ? The Department of Labour identified film and TV training as scarce skills needs for the country. According to Absa Annual Report (2009) Big Fish won the Prestigious Stevie International Business Award for CSR Programme of the year on September 2009. Absa was acknowledged for assisting Big Fish in this achievement. Due to the Programme?s Success, Absa decided to continue with Big Fish as a partner in the Entrepreneurship Development Flagship Programme, and support another intake of 20 students in 2010 (Absa Annual Report, 2009). Absa being a brand financial service provider in South Africa is indeed committed to ensure that communities and NGO?s are up lifted. Their involvement in nation building is commendable and is truly a corporate citizen of South Africa. 167 CLOTHING RETAILER Clothing is a highly consumed commodity by South Africans like any other country or community in the world. South Africa has many branded clothing retailers which are visible in all major communities. Each retailer carries a variety of branded labels which are popular and some that are not so popular. Retailers cater for a specific percentage of market segments. The following are a few examples for branded clothing retailers: Woolworths, Edgars, Jet, Markham and PEP. The following outlines the PEP brand retailer which caters for the average South African. PEP BRAND Pepkor (2010a) mentions that the company is a South African based investment holding company with retail interests in Africa (where it trades in nine countries), as well as Australia and Poland. Pepkor (2010a) further mentions that the group was established in 1965, manages a portfolio of retail chains focused on the value market and selling predominantly clothing, footwear and textiles. PEP?s main operating subsidiaries are PEP and Ackermans in South Africa and Best & Less in Australia, all based on a high volume/lower margin business model. The group trades from more than 2 400 stores and employs almost 23 000 people. Table 4: Pepkor group structure Source: http://www.pepkor.co.za/group.html According to Pepkor (2010b) PEP stores is the largest single-brand retailer within the South Africa with over 1500 stores. PEP Stores is the foremost brands in the country, it has the best retail distribution system, the biggest store network and, most importantly, PEP believes it has developed the best group of people working in retail within South Africa. 168 Irwin (2002b) further states before South Africa?s first democratic election in 1994, PEP had dominated the cheap retail sector for three decades and was perfectly poised to cash in on the newfound retail power of the disenfranchised black community, which had begun to be the focus of modern South African marketing. Irwin (2002b) states that PEP?s South African target segment moved away from purchasing cheap clothing. These customers moved towards purchasing mechanise which was previously reserved for whites only: branded clothing, Nike, stereos and computers. Banks moved in to capture this segment providing them with credit cards, home loans, online banking facilities and the opportunity to walk into any restaurant without being turned away. PEP started doing some serious brand management. A new management team, under the leadership of managing director Andr? Labuschaigne, was appointed in 1998. Pepkor (2010b) mentions that customers increasingly buy at shopping centres which caused PEP are opening more and more stores in malls. The new store design, which includes a new layout, windows, fixtures and fittings, and bold use of colour, is complementing this move. The PEP design is futuristic and fits well in shopping centres without compromising its brand. More emphasis is also being placed on creating a pleasant shopping experience to help PEP achieve its aim of being the friendliest retailer in South Africa (Pepkor, 2010b). PEP retail business operates on a cash basis only, keeps its margins to the minimum and has a low cost culture. Its buyers source merchandise both locally and internationally that is in tune with the demands of its customers for a wide range of good-quality, fashionable merchandise. PEP aims to continue as the dominant mass-market retailer for every-day-lowest-price items of clothing, footwear, textiles, home wares and cellular products (Pepkor, 2010b). PEP RE-BRANDING According to the Gillingham (2009) first time a retail brand was written into the script and a storyline of a leading soap opera and this was a revolutionary way to promote the PEP brand. PEP engaged one of the top South African soaps ?Generations? to re-brand itself. This was indeed a smart move since the show is viewed by a large number of viewers in South Africa. According to PEP Stores (2008) the ad agency on Generations (SABC 1 at 8 pm) pitched for and won the PEP business and presented PEP?s new tagline: ?Best prices and More?. Off air and in reality, PEP customers saw the new campaign played out in-store (as featured on Generations). Millions of Generations viewers made the connection between what they had 169 seen on TV and what they saw in-store. The main character in the programme, Queen also wore PEP clothes on the programme. PEP Stores (2008) further states that Queen Moroka dressed with PEP clothing has made it acceptable for masses of people to wear PEP clothing. It is alerted their curiosity, brought them into the stores and promoted sales; it is raised the standard and given PEP shoppers more confidence. Irwin (2002b) states that PEP expanded quickly throughout South Africa. PEP?s combination of no frills, solid value goods combined with savvy branding kept it almost synonymous with poor but proud marketing. Irwin (2002b) mentions that PEP, is Southern Africa?s best known chain of retail stores that offers a variety of durable and up-to-date family clothing, footwear, textiles, household goods and cellular products to Africans from all walks of life with a particular focus on the very poor. There are over a thousand PEP stores throughout South Africa, Namibia, Lesotho, Botswana, Swaziland, Malawi, Mozambique, Zambia and Ghana. The company employs 9000 people, and had a turnover of R2.2 billion (US$ 208M) and an operating profit of R118 million (US$ 11.18M) in the fiscal year ending June 2000 (Irwin, 2002b). According to Labuschaigne in Irwin (2002b), PEP fits perfectly into the new South Africa. Labuschaigne in Irwin (2002) comments that PEP is probably the only retailer that almost perfectly reflects the population of the country. In other words, PEP is not going to let itself be abandoned by the client base it helped to create. The key to brand management is to identify strengths and true values, involve people, shape a dream for them and relentlessly stick to this dream by doing everything, every day to achieve just that (Labuschaigne in Irwin, 2002). Labuschaigne in Irwin (2002b) continues to state that PEP has worked hard to offer customers good quality products and acceptable styles but still maintaining the lowest prices. More importantly, we have also worked hard to give every employee a sense of belonging. These two factors are the main contributors to our so-called turnaround. Labuschaigne also took charge of the company?s marketing, sprucing up and revising company leaflets, training staff to use megaphones to advertise in-store specials, and encouraging staff to be on a first name basis with customers. The strategy has paid big dividends placing PEP third place in brand recognition among South African retail stores, having enjoyed an almost 20% growth in the year 2001 alone (Labuschaigne in Irwin, 2002b). 170 Labuschaigne in Irwin (2002) also began a process of motivating the staff through various communication modes: face to face meetings, workshops, email, videos, conferences, monthly information sessions, newsletters and regional and national conventions (Irwin, 2002b). PEP?S COMMUNITY DEVELOPMENT Labuschaigne in Irwin (2002) PEP works hard towards contributing to black empowerment through a comprehensive social investment programme that is focused on the needs of its customers. It has helped fund education, development of entrepreneurship, and health and also provides community advancement projects across Southern Africa. PEP management staff is mandated to become personally involved in these initiatives (Irwin, 2002b). According to Labuschaigne in Irwin (2002b) they are in the process of working hard to improving the product?s value that will still at the lowest prices, and invest in training programmes to differentiate our service at store level from other retailers. PEP?s goal is to grow into a brand known worldwide not only for the quality of its stores, but for its consistent efforts at black empowerment and the strength of its brand name. PEP is indeed a resurrected brand that has under gone re-branding and has become a major branded retailer. Its focus is not only based on increased profits but it takes its consumers seriously and enforces realistic engagements with them. This branded retailer is indeed impacting the South African consumer landscape and will do for decades. CELLULAR SERVICE PROVIDER South Africa has four cellular service providers. Communication is an important part of the lives of South Africans. Cellular phones at first were seen as a luxury item. Today, it has become a much sort after tool for communication. From a luxury item it as evolved into becoming an essential tool of necessity. The following providers are Cell C, MTN, Virgin Mobile and Vodacom. For this part of the study Vodacom is chosen as a branded service provider in the cellular service provider category. 171 VODACOM BRAND De Wet (2007:15) states that Vodacom has enjoyed success in South Africa and also contributed to the countries transformation in society and economy. According to GradX.Net (2006) the 2006 Markinor/Sunday Times Top Brands survey mentioned that Vodacom, long known as South Africa?s leading cellular network, and is rapidly becoming South Africa?s leading brand. Vodacom was placed in the top 5 positions for every category, giving credit to Vodacom?s increased brand ranking across a wide range of categories since the last survey (GradX.Net, 2006). YeboYethu (2010) states Vodacom SA remains the number one tele- communications brand in South Africa. Superbrands (2005a:171) state that Vodacom is South Africa?s leading cellular network, Vodacom embodies the qualities of caring, trust and respect. As a Proudly South African company, Vodacom goes about its business with integrity and humility. According to YeboYethu (2010) Vodacom Group has an agreement with Vodafone allowing Vodacom SA to market Vodafone branded products and services are trademarks and they currently are: ? Vodafone Mobile Connect Cards. ? Vodafone live. ? Live TV channels. ? BlackBerry. ? Vodafone Mobile Connect. ? Vodafone live. ? Vodafone Passport. According to YeboYethu (2010) in the category of companies operating in South Africa that has done the most for community upliftment, Vodacom earned second place by moving up three positions from its fifth place in the 2005 survey, proving yet again the nation?s trust in Vodacom?s commitment to CSI. Beyers in GradX.Net (2006) states that the greatest reward is the confirmation that our customers have confidence in the Vodacom brand, as they are the key to our success. 172 According to Vodacom (2010a) engagement with stakeholders on sustainability issues has been largely dictated by the strategic direction of the business. Vodacom (2010a) further states that issues that have received high-level attention are those that are close to the business operations. According to GradX.Net (2006) Vodacom was selected as South Africa?s second favourite overall brand after Coca-Cola, This has increased its lead from third place last year, while retaining its number one position as South Africa?s favourite advertiser. Vodacom is one of the leading communications company in South Africa and has contributed to nation build. It is also a recognised brand and operated in various spheres of the corporate world (GradX.Net, 2006). Vodacom (2010c) avers that that company has made a considerable investment in community development. Since 1999 Vodacom Foundation has been in operation and has allocated over R500 million for community development. During the 2010 financial year, the Vodacom Foundation in South Africa contributed R69 million, a 2% increase over the prior year. A further R12 million was spent by other companies within South Africa on CSI activities. Vodacom (2010c) further states that mobile communications can be harnessed to deliver social benefit; the community development strategy was recently revised and now places a stronger emphasis on ICT-enabled projects. Over the next year, the projected expenditure aligned to ICT is targeted to exceed 50%. Projects are also chosen to leverage services as SMS and USSB in support of community health, education and security. In addition to the provision of in-kind services, Vodacom SA has actively partnered with staff through the Yebo Heroes initiative, with 1260 employees contributing to payroll giving and 1729 volunteering their time for community support (Vodacom, 2010c). Vodacom (2010c) provides the following: ? Employee engagement ? Employee interests are formally represented by 33 local consultative committees which meet on a monthly basis. ? Customers ? Through our Customer Lifecycle Management programme, Vodacom interacts with customers to provide information, assess needs and measure satisfaction with our service. We also conduct customer focus groups, surveys, as well as monthly in-house and independent customer surveys. Vodacom?s call centres receive approximately four million calls a month, of which 73% are answered within 20 seconds. 81% of all calls are resolved in the first interaction. Approximately 25 000 emails are received per month, of which 80% are responded to within 11 hours. 173 ? Governments and regulators ? the entire Group?s operating companies have dedicated resources responsible for interaction with governments at national, local and regional level. Vodacom is proactive in engaging with regulators. ? Business partners ? Vodacom SA engages with franchisees through eight regional franchise associations, as well as a national association. Vodacom SA?s Business Partner Conference, an annual event held over two-and-a-half days, is hosted for all business partners ? key suppliers, dealers, franchisees and national chains. Vodcom?s aim at this event is to review the past year?s performance and to discuss the coming year?s plans. ? Communities ? Vodacom makes use of a number of channels to identify communities receiving inadequate network coverage. In South Africa, regions proactively conduct road shows to municipalities sharing the company?s roll-out plans, but also to assess specific needs with ward counsellors, particularly relating to municipal Integrated Development Plans (IDPs). Vodacom SA also supports ICASA?s Customer Care road shows in rural areas around the country, and builds base stations in support of government initiatives. More generally, requests by individual customers are received via Vodacom call centres and are resolved accordingly. VODACOM CSI According to Moneyweb (2009) Vodacom reported revenue earning of R55.2 billion. Vodacom is headquartered in Voda valley, Midrand, South Africa and employs approximately 6 695 people. YeboYethu (2010) Vodacom SA is recognised as a major sponsor of sport in South Africa. These sponsorships include sporting teams on a national and provincial level such as: ? The Springboks. ? Bafana Bafana. ? Vodacom Blue Bulls. ? Vodacom Cheetahs. ? Vodacom Stormers. ? Kaizer Chiefs. ? Orlando Pirates. ? Bloemfontein Celtics. 174 Moneyweb (2009) states that Vodacom SA also sponsors tournaments and events such as: ? The Vodacom Super 14. ? Vodacom Cup. ? Vodacom Tri Nations. ? Vodacom Challenge. ? The Vodacom Durban July. According to Sampson in Hellkom (1999) brands have the power to change people?s lives - and to also change the world. The branded retailer can use this successfully to increase their market segmentation if they positively contribute community development. In South Africa, Vodacom is a good example of this power (Hellkom, 1999). Vodacom Foundation Vodacom is committed to investing in community development in which we operate. Vodacom recognise that they have responsibility to assist communities not only with financial contributions but also through the innovative application of our technical skills and operational capacity (Vodacom, 2010b). The application of mobile communications in education and health in particular can be broadened to deliver much needed services to the citizens of the countries in which we operate. It is for this reason that Vodacom has established foundations in most of the countries of operation. In their ten years celebration it was recorded that Vodacom Foundation spent R67 million during 2009. The Foundations total investment is R500 million (Vodacom, 2010b). Stakeholder Partnerships Vodacom Foundation has developed strong relationships with the government departments of education and health, at national, provincial and local levels. Programmes are normally also delivered by a number of Vodacom?s partners, each providing specific expertise, and the Foundation enjoys a close working relationship with institutions such as: the SA National Council for the Blind, Netcare and the Pretoria Eye Institute (Vodacom, 2010b). In April 2009, the Vodacom Foundation launched its website to serve as an interactive communication portal for its engagement with stakeholders ranging from government and implementing partners to communities and individuals (Vodacom, 2010b). 175 Vodacom Approach Vodacom (2010b) states that the Foundation support takes the form of cash, in-kind giving, time and skills. The following are some examples: ? Cash support usually consists of once-off donations, or one- to three-year funding agreements. Additionally, contributions deducted from staff salaries through the company?s ?Payroll-Giving? platform totalled R654 000 this year, with 1260 registered payroll contributors. ? In-kind support comprises collections, driven by the company?s 1729 employee volunteers, our Yebo Heroes, typically in the form of books, clothing, blankets and other much-needed items. ? Time and skills contributions are driven by Yebo Heroes, including form of relief duty, gardening, painting and tree-planting. Staff completed 75 volunteer projects this year. Vodacom (2010b) states that they use criteria for dispensing Foundation support include the potential to use ICT to solve: ? Social problem. ? The degree of impact. ? Partnerships. ? Sustainability. ? Sound governance. ? Track record. ? Solvency. According to Vodacom (2010b) currently, the bulk of its funding goes towards projects that offer naming rights and branding opportunities, example mobile labs and clinics, lifesaving operations (facial reconstruction, cataracts, cardiac surgery). Vodacom also supports projects that require on-going funding to survive, such as feeding schemes and bursaries. In the future Vodacom will be looking to increase the proportion of spending on projects that are more closely aligned to its business competency, such as applying ICT to solve social problems. Good examples of these are Cell-Life and ICT Resource Centres (Vodacom, 2010b). 176 Vodacom (2010b) continues to state that this year the Vodacom Foundation will embark on rolling out ICT resource centres that aims to assist schools through e-learning initiatives. These facilities will be community based, providing general Internet services. A range of computer training programmes primarily for the teachers and also for the community at large. Two centres will be rolled out this year. The intention is to provide seven more facilities in the next few years, with the aim of establishing one resource centre in each of the nine provinces (Vodacom, 2010b). Education Telkom Annual Report (2007) states that education took up 53% of the total Vodacom Foundation budget with the bulk of that amount going towards bursaries and scholarships in ICT-related qualifications. Various other partnerships are forged which contribute to addressing the skills shortages experienced by both the industry and society. Vodacom?s CEO scholarship award is an excellence-based scheme that had an outstanding success with the inaugural recipients, where the top three matriculants were offered generous Vodacom scholarships to pursue university degrees. There was a new intake of the three top matriculants in 2006 that are following studies in accounting, actuarial science and astrophysics (Telkom Annual Report, 2007). In 2006 the Wits University Convergence Laboratory was launched in partnership with Telkom, Siemens Telecommunications and Vodacom (University of Witwatersrand, 2006). Telkom Annual Report (2007) states that sponsored by Vodacom, Telkom and Siemens as one of the sponsors of the Wits Centre of Excellence (COE). The Vodacom sponsorship is towards the programmes conducted at the convergence lab of the facility. Telkom Annual Report (2007) states that Connect SA national technology challenge, partnered with the ABSA Foundation, this project is designed to stimulate interest in mathematics and science. The project aims to identify talent in young South Africans for careers in the technological field by stimulating interest in subjects that support such career choices (Telkom Annual Report, 2007). 177 Health Engagements According to Telkom Annual Report (2007) the area of health accounted for about 23% of the Foundation?s budget. Besides education, health often makes the difference between ensuring sustainable livelihoods and dependence on welfare. Eyesite.co.za General (2010) states that hundreds of parents and grandparents stand to benefit from free cataract operations which fall in the Vodacom?s Goals for Miracles campaign for eye care. The Pretoria Eye Institute, Netcare Vodacom Sight for You, and the South African National Council for the Blind were presented with a cheque today - World Sight Day - for R2.930 million to be used towards the costs of cataract operations that can help recover some of the sight that old age and other conditions may have robbed them of (Eyesite.co.za General, 2010). Telkom Annual Report (2007) states that Cataract programme/ Sight 4 U/ Pretoria Eye Institute: Vodacom?s partnership with Netcare and the Pretoria Eye Institute has allowed many corrective procedures to be performed on individuals with damaged cataracts. Since the launch of the partnership with Netcare in 2004, the Foundation has assisted more than a thousand patients to regain their vision. The Foundation is also the main sponsor of the Pretoria Eye Institute?s eye care awareness week, and contributed to an additional 115 cataract operations at the Institute outside this particular week (Telkom Annual Report, 2007). Telkom Annual Report (2007) further reports the following: ? Cleft palate programme: In a separate partnership, the Foundation also joined hands with Netcare in a programme called ?Smiles 4 U?. This programme has assisted with some 200 cleft palate operations to date. ? Walter Sisulu Paediatric Cardiac Centre for Africa: This centre also gets financial assistance from the Foundation, which to date, has helped fund 18 procedures conducted to treat heart defects in youth and babies by surgeons at Sunninghill Hospital. The centre is named after the late Walter Sisulu and his wife, Albertina, is its patron. ? Bayethe Foundation: Vodacom responded favourably to a request by King Goodwill Zwelithini donating six Isuzu Bakkies that will be used to transport HIV and Aids educators to reach various rural communities in the Ulundi area of KwaZulu-Natal. ? Ikhaya Lethemba: The Foundation provided furniture and other material for the launch of the residential phase of the Ikhaya Lethemba Centre, a one-stop centre for abused women and children in Johannesburg. 178 ? Women and men against child abuse: Vodacom continues its support for the Boksburg and Alexandra clinics run by this organisation. The funds are used towards the costs of medical consultations and counselling for the victims and survivors of abuse. A total of 6,720 new cases as well as over 12 thousand follow-ups have been handled since the Vodacom Foundation started supporting this project in 2003. ? Committee against crime: The Foundation is in the second year of funding a Northern Cape Committee that rehabilitates street children by involving them in the fight against crime. ? Yebo heroes programme: This programme is aimed at involving the Vodacom employees to participate directly in community projects. In only twelve months since the implementation of a staff participation programme, Vodacom has managed to encourage about 600 staff members to operate as volunteers in some of its community projects. The most successful of these campaigns is payroll giving where about 500 staff members contribute monthly to a number of charities through the giving organisation. The utilisation of departmental team building sessions to revamp buildings and gardens, paint walls and bring other forms of relief is gaining popularity as a means of helping needy individuals and institutions. INNOVATIVE MARKETING According to Moneyweb (2009) Vodacom ThumbWars, was launched on SABC 2 on 4 June, is the country?s first ever major mobile format in reality TV and explores a new and creative marketing channel to educate and create awareness of mobile technology amongst ordinary South Africans. Kumalo in Moneyweb (2009) our pioneering spirit is the DNA of the Vodacom brand. When Stimulii approached us with the idea for Vodacom ThumbWars it was clear that this concept matched our adventurous brand personality. Connecting people and connecting them to their world is after all what Vodacom?s all about (Kumalo in Moneyweb, 2009). Moneyweb (2009) states that As South Africa?s leading cellular network, the delivery of products and services is an integral part of fulfilling Vodacom?s brand promise; particularly as it is through technology that the brand is able to improve connections and, in so doing, improve the quality of our customers? lives. Kumalo in Moneyweb (2009) says that the opportunities for marketing technology products and services are for nominal, but added that the challenges are also. In order to market technology to our customers, we need to start with 179 demystifying it, as well as demonstrate how this can add value to everyone?s everyday life (Kumalo in Moneyweb, 2009). MOBILE COMMUNICATIONS According to Moneyweb (2009) Vodacom is a leading African communications group providing mobile communications and related services to 39.6 million customers as at 31 March 2009. Its mobile network covers a total population of approximately 182 million people across five countries: South Africa, Tanzania, the DRC, Lesotho and Mozambique. Vodacom?s presence in Africa was strengthened with the acquisition of Gateway on 30 December 2008, which has customers in 40 countries in Africa, providing communications services to multi-national companies and telecommunications network operators. In addition, Vodafone has agreed to use Vodacom as its exclusive investment vehicle in sub- Saharan Africa (Moneyweb, 2009). According to YeboYethu (2010) Vodacom South Africa is the largest mobile communications network operator in South Africa by number of customers and revenue. It offers a wide range of mobile voice and data communication products, value-added services as well as the sale of handsets. Its state-of-the-art technology, world-class products and services, quality of service requirements and exceptional service levels have resulted in Vodacom SA being the market leader in South Africa with a market share of approximately 55%.Vodacom South Africa is aggressively expanding its Vodacom Business division with a focus on becoming the selected ICT provider in South Africa (YeboYethu, 2010). YeboYethu (2010) further states that Vodacom SA?s marketing of airtime as a fast-moving consumer good means that anyone, anywhere can buy affordable airtime along with other consumables such as bread and milk at thousands of formal and informal retail outlets across the country. This has been adopted as a model by operators worldwide. YeboYethu (2010) Vodacom SA?s accomplishments regarding product offering bear testimony to its record of innovation. Recent products launched include prepaid data bundles, instant messaging, social networking platforms, remote video surveillance, mobile advertising services and a music application which converts a mobile phone into a portal for downloading worldwide music content. Vodacom brand is indeed an innovative which transforms the communication spheres and also embraces CSI initiatives to assist NGOs and other project to improve the communities of South Africa. 180 FAST FOOD BRAND Fast food in South Africa is big business especially to big brands and they ensure that they continue to maintain their presence within the market place. South Africa has many major branded fast food retailers which are based throughout South Africa. Each of them ensures that they do everything to capture the attention of South Africans consumer. According to Journalistic Incorporated (2010) South Africa has many branded fast food retailers such as: Nandos, KFC, Ocean Basket, Chicken Licken, Steers and many other popular fast food brand retailers. Each of these big brands has their own market segments. They vary in popularity and not all operate at their peak in all communities in South Africa. The KFC brand has successfully established itself in all communities in South Africa. Although KFC as not originated from South Africa it has established itself quite well as a brand that believes in South Africa (Journalistic Incorporated, 2010). The KFC brand is select to be a part of this the study and their operation as a brand retailer is outlined. KFC BRAND Yum Brands (2009) states that the Sunday Times (South Africa) Top Brands Awards for 2009 has named KFC the dominant restaurant brand, ahead of all other South African and global brands. KFC is also the only restaurant company to be placed in the top 10 list of brands spanning all industry categories. Allan in Yum Brands (2009) states that the dedication of our employees and franchisees, their passion for achieving a great consumer experience and providing innovative products to our customers in South Africa, all of which significantly contribute to making KFC the dominant food?service brand in the country. According to Gillingham (2009:3) the KFC brand exemplifies marketing excellence in South Africa. According to Warren in Yum Brands (2009) the success is to build KFC into a dynamic, vibrant brand throughout South Africa and the world. According to Jackson (2008:7) the growing dominance of the KFC brand in South Africa is no coincidence. KFC emerged as the number one fast food retailer and its new version of Chicky KFC was rated the country?s top brand character (Jackson, 2008). According to Yum Brands (2009) our acknowledgment as the top restaurant brand in South Africa is a great achievement and this has added to the growth in the key market. Gillingham (2009:3) states 181 that by Yum segmenting the market brought its target message to focus on the different customer needs. Yum Brands (2009) states that for the past 40 years Yum Brands has been driving growth to become the largest and fastest growing restaurant company in South Africa. As of the second quarter 2009 earnings, the company has approximately 550 KFC units in South Africa. Gillingham (2009:3) states that KFC?s success?s is attributed to its ability to understand the fast-changing local consumer landscape. Warren in Yum Brands (2009) mentions that this achievement spotlights the high esteem consumers has for KFC. Our highly?skilled workforce, exceptional restaurants and innovative menu have been the recipe for success in providing an outstanding experience for our customers. Heidi in Gillingham (2008:11) states that KFC had succeeded in establishing itself as a value-for-money brand, a particularly important attribute for lower LSMs while imparting a trendy, fashionable, image to its products that has won over higher LSMs. KFC COMMUNICATING According to Gillingham (2008:11) customers enter into a KFC with an expectation, these expectations are based on factors such as brand promise, brand communication, and brand vibe. Gillingham (2009:3) states that KFC?s uses television for most of their advertising. Although television has a broad reach, KFC also uses other media such as Billboards to deliver a target message in a particular area. Magazines and radio stations are also used in a similar manner Gillingham (2009:3). KFC (2010b) states that more than 12 million customers are served on a daily basis at KFC restaurants in 109 countries and territories around the world. KFC operates more than 5,200 restaurants in the United States and more than 15,000 units around the world. KFC is world famous for its original recipe fried chicken made with the same secret blend of 11 herbs and spices Colonel Harland Sanders perfected more than a half-century ago. Customers around the globe also enjoy more than 300 other products from Kentucky Grilled Chicken in the United States to a salmon sandwich in Japan (KFC, 2010b). 182 KFC (2010b) states that KFC is part of Yum Brands, Inc., and is the world?s largest restaurant company in terms of system restaurants, with more than 36,000 locations around the world. The company is ranked 239 on the Fortune 500 List, with revenues in excess of $11 billion in 2008. KFC CSI ADD HOPE KFC is committed to fight against hunger. KFC launched a campaign to this effect. According to KFC (2010a) the ICC Champions Trophy KFC raised R220, 000 for the SOS Children?s Villages through their KFC ?Add Hope 6?s campaign?; every time a Protea player hit a 6 during their matches, KFC will donate money to the charity. Yum Brands (2009) states that KFC has been recognised for its reward and recognition culture, diversity leadership, community giving, and consistent shareholder returns. For the second year, the company launched the world?s largest private sector hunger relief effort in partnership with the United Nations World Food Programme and other hunger relief agencies. To date, this effort is helping to save approximately 4 million people in remote corners of the world, where hunger is most prevalent (Yum Brands, 2009). Keith in KFC (2010a) states that KFC has been inspired by the South African cricketers, who raised R220,000 for the SOS Children?s Villages and KFC has decided to extend their commitment to the fight to alleviate hunger by donating a further R2 780 000 to the SOS Children?s Villages. KFC (2010a) states that the SOS Children?s Village is a private, charitable, social development organisation that has looked after orphaned and abandoned children for 27 years by building family units that house eight to ten children raised as brothers and sisters under the love and guidance of an SOS Mother. There are currently around 995 children living in SOS Children?s Villages in Pretoria, Johannesburg, Pietermaritzburg, Mthatha, Port Elizabeth, Cape Town, Nelspruit and Rustenburg. KFC (2010a) states that they have provided R3 million to provide all 995 children in the SOS Children?s Villages with 3 nutritious and healthy meals per day for an entire year. Bagus in KFC (2010a) states that KFC?s incredibly generous contribution provides nourishment and security to the children who can develop healthily. 183 The Marketing Site (2010) states that the South Africa MD for KFC, Keith Warren and family joined fellow KFC employees and hundreds of participants at the annual Discovery Walk the Talk fundraiser which took place on Sunday, 26 July 2009 at the Marks Park Sports Club in Emmarentia, Johannesburg. This venture proves once again that KFC is a brand that cares. The recently launched ?Add Hope campaign? is designed to drive greater awareness and a much needed continued support for the global problem of starvation (Warren in The Marketing Site, 2010). Figure 18 displays the logo that is used in this campaign. Figure 18: KFC Add Hope Campaign Source: The Marketing Site (2010:http://www.themarketingsite.com/live/content.php?Item_ID=9547&Revision=en/0&Start=0) KFC Health KFC is seen as problem by many since its chicken is fried and not grilled. Although this may be the case for some, many still pack the KFC outlets purchasing the various varieties on their menus. As company they are concerned about their customers and they are also socially responsible. Kentucky Fried Chicken faced difficulty in projecting itself as a healthy brand since fried in oil is not seen as a healthy option. Today we see the shorten name ?KFC? this to some degree removes the stigma to the word fried. Associated Press (1991:6) states that the Kentucky Fried Chicken Corporation is going through a new image-changing design for its packages. Customers will see ?KFC? instead of ?Kentucky Fried Chicken? on packages in the near future, and the company also plans to drop the registered ?It is finger lookin? good? tag line. Lewis (2004:70) states that it was the same slogan that contributed to the brands development. The KFC make over is currently adapted and consumers have accepted this brand. 184 According to Spielberg (2005:60) KFC had abandoned the ?Kentucky Fried Chicken? name in the 1990s in favour of the more neutral three-letter moniker. Spielberg (2005) furthers mentions that the current image is a little dated and does not have the feel and contemporary image that relates to younger consumers or consumers who are looking for a healthier lifestyle. Cebrzynski (2008:7) states that KFC continues to gear up for a major re-branding initiative with the launch of ?grilled? chicken next year, some competitions are taking aim at segment leader and questioning its plan while others say their marketing efforts will continue to stress core brand values. Buckets for Cure KFC (2010d) states that KFC has joined the fight against breast cancer with a national ?Buckets for the Cure? campaign aimed at educating more women about breast health, generating support for the cause and attempting to make the single largest donation in the history of Susan G. Komen for the Cure. Benito in KFC (2010d) states that the ?Buckets for the Cure? campaign engaged the KFC family nationwide to reach millions of women and men with breast health education. This fight for breast cancer campaign is a global initiative and it is not just for America. Environmentally-Friendly KFC According to Nvudev.org (2010) green technology system is incorporated as a new and innovative method in materials that are used to create more environmentally friendly cleaning products. The expectation with technology like this is to change the daily habitual habits of society. Green technology focuses on household cleaning products, waste, inventions and clothing and energy sources making this technology sustainable. Balas in KFC (2010c) states that this latest effort is viewed as a commitment for implementing environmentally-friendly solutions and continued research in the field of green technology. Nvudev.org (2010) states that one should think of green technology as extending the planet earth back a couple of centuries, when a simpler form of survival existed. Technology like this can only be beneficial to earth. 185 According to Coutts in KFC (2010c) in this era many companies are talking green, Yum Brands is walking green. Yum?s incorporation of solar energy into one of their facilities highlights how KFC is putting environmental objectives directly into action and showcasing to the public how CO2 reductions are achievable with the design of smart buildings (Coutts in KFC, 2010c). The KFC/Taco Bell SolarWall system will displace more than 9 tons of carbon dioxide from the atmosphere and is estimated to produce approximately 100 million BTUs of thermal energy per year. This means that during the 30-year life of the system and the building, Yum! Brands will have displaced more than 270 tons of carbon dioxide as a result of this one initiative (KFC, 2010c). KFC is no doubt a brand that is committed to contribute towards the building of the nation through the various social engagements that is listed above. The brand has being successful in maintaining an innovative manner to captivate their customer base and also able to use this to increase their market segment. AFRICAN BRAND Branding within South Africa does not only focus on companies and products, Political parties have also engaged branding in more vigorous way. Service providers that are still rely on government for funding such as the SABC, SAA, Eskom are also being rated as a brand. Political departments are being surveyed as brands and politicians such the president and other members of parliament are also seen as brands. According to Groenewald (2009:2) the former state president Mr Nelson Mandela was named the favourite personality for both consumers and business people. Groenewald (2009) further states that politicians featured in both categories. This is possibly an indication of how important this year?s elections were for the South African public. According to Funkey (2009:23) African wisdom provides a teaching for everyone to live with dignity, generosity, striking a balance and finding harmony are at the heart of living a meaningful life. Funkey (2009) further mentions that by tapping into these simple truths, we can identify the critical success factors for brands in this new world: ? Connect, support and enable. ? Be authentic and always honest. ? Tech others to do the same. 186 Funkey (2009) continues to state that branding for good in Africa means embracing this wisdom to build ethical brands committed to doing the right thing by enabling social, environmental and economic sustainability. Brand South Africa (2010) states that media group Primedia Broadcasting and Independent Newspapers have launched Lead SA, a new drive to boost nation-building and encourage South Africans to make a positive impact on society that they live in. According to Brand South Africa (2010) the campaign, which was launched in early August, is to take advantage of the spirit of Ubuntu that helped make the 2010 FIFA World Cup such a resounding success. For this part of the study the Proudly South African brand will be outlined. Rural Brands Rural communities have a great amount of wealth of which is not explored by them but exploited by others. Many indigenous items which are basically taken for granted by the local people are often seen as indigenous brand. Since many of these indigenous brands are still in its raw state and therefore are not valued as currency. The lack of expertise and technology places rural brands as just unprocessed items for sale. Although this may seem to be the case rural communities have their unique ways to communicate and establish relationships with surrounding communities through trade my exchanging their harvest. According to Malli (2009) rural communities are geographically scattered and are in some way disconnected from the mainstream population. But they are significantly more close-knit, with relationships largely within the community rather than without. There are many categories that exist within rural communities. Some of these categories are herbal medicines, rare vegetation, and traditional cuisines and primitive sites. According to O?Connell (2004) plants have a multitude of uses around the world, and there are too many examples of species that have become endangered due to excessive, or unsustainable harvesting practices. South African Medical Council (2010) states that Aspalathus Linear is only grown in the Cedarberg area of South Africa?s Western Cape Province, Aspalathus Linear is, a woody legume, is cultivated for the production of rooibos. South African Medical Council (2010) states that the needle-like leaves and stems are used to manufacture rooibos tea which has been used as herbal beverage and to a lesser extent, as herbal medicine, in South Africa since the 1800?s. According to Ferreria (2010) Nestl? has thrown a veil of secrecy over its plans, which have sparked international allegations that the Swiss-based company committed biopiracy in South Africa. Two non-profit groups, Berne 187 Declaration in Switzerland and Cape Town-based Natural Justice, accused Nestl? of ?rooibos robbery?, saying it had obtained the herbs for research without complying with South Africa?s Biodiversity Act (Ferreria, 2010). MacDougall in Ferreria (2010) mentioned that Nestl? decided not disclose this. The council, which represents the local industry, has invested R2-million in research into the health properties of rooibos, which is believed to help prevent diseases like cancer and heart failure. We think it is fabulous that the plant can be used internationally, but it must be done equitably without unfairly seeking to exploit the local industry?s investment in research or marketing (MacDougall in Ferreria, 2010). MacDougall in Ferreria (2010) mentioned that the council was concerned that the Nestl? patents might block South Africans from making commercial use of their own plants. We do not know exactly what Nestl? plans to do with it and feel that their patent would exclude in terms of who has usage of the plant. Coloured people depended for a living on the industry, centred in the Cederberg (MacDougall in Ferreria, 2010). O?Connell (2004) states that the National Botanical Institute, Kirstenbosch, South Africa discovered that smoke can stimulate the germination of many South African species, including Cyclopia, and this was used to mass-propagate Cyclopia. There are now 40 communities in impoverished areas, where formerly there was no agricultural activity, and now are able to engage in industrial-scale operations for the production of Honey Bush Tea. Traditional cuisines have fed families for centuries and to this day it provides nourishment to rural communities. These traditional foods are becoming popular since branded retailers have started to market them in their stores. According to Seeco (2007) the preparation of African traditional food such as Morogo, Masonja, Ting ya mabele, Mogodu, Phuthu, Samp and Beans is still the staple diet and this very common in rural homes. Product sampling plays a major role in marketing brands to diverse markets. The Marula fruit is another that is easily converted to currency. Rural communities of Limpopo have prepared the Marula fruit as a traditional beer which is drunk in clay pots. According to Kwapa in Independent (2010) government decided three years ago to create a Marula Festival that runs in late February, pulling in thousands of guests with concerts and, of course, fresh beer. Most of the foreign visitors come from neighbouring countries, but the event last year brought in 1.4 million rands (190,000 US dollars) in revenue. 188 Independent (2010) states that big distillers have had success by using the fruit to make a cream liqueur called Amarula, which is marketed globally. Locals have also been experimenting with other uses for the fruit, which has a nut that can be ground for cooking and making other products such as jam, soap and body lotion from the Marula (Independent, 2010). According to Explorer South Africa (2010) South Africans love their braais (barbeques) and are passionate about how it should be done. There are many more other delicious, traditional South African foods available; the most famous of this is probably biltong, which is strips of dried meat which come in various flavour and types. Potjiekos is a delicious slowly cooked meat and vegetable stew, which is traditionally cooked over an open fire. Mielie Pap, is a stiff corn meal mix, is a staple food of a South African diet. Boerewors, a spicy sausage almost always cooked on the braai. Other examples are Melktert (Milktart) and Koeksisters which are very sweet doughy treats, but also quite delicious (Explorer South Africa, 2010). The rural communities are regarded as indigenous however they are being influenced by ?urbanisation?. Media plays an active role in this. The brands used by them and branded appliances has moved these rural communities towards modernism. According to Seeco (2007) the ?urbanisation? of rural communities is visible in furniture buying patterns. Appliances such as fridges, stoves, televisions and music systems are popular among rural purchase. This demand is clearly seen by the many different furniture shops can be found in a single shopping centre. Brands such as Hisense, Defy, Panasonic, Frigidaire, General Electric, Super Deluxe, LG, Samsung, Telefunken, Sansui and Sony are popular. There seems to be little preference for specific brands, however people do speak of the importance of quality and price. PROUDLY SOUTH AFRICA BRAND According to Iwrin (2004) the Proudly South African brand campaign was launched in October 2001. The goal was to encourage economic transformation and job growth in the country through the promotion of local products and services. Modelled on the successful ?Made in Australia? campaign, the ?Proudly South African? campaign has experienced rapid growth and captured the imagination of the local consumers. 189 The Proudly South African logo is visibly seen can now be found on CDs released by popular South African musicians, on the sides of locally owned fishing trawlers, at shop entrances, on clothing, and on food packaging. Close to 2,000 member companies now bear the Proudly South African logo Iwrin (2004). Superbrands (2005a:123) states that the values of the core value of Proudly South African include national pride, integrity, honesty, reliability and enthusiasm. Buyers know that the product or service emblazoned with the logo indicates fair business practice, environmental awareness and the opportunity to enhance the feeling of patriotism so long missing from South Africa. Proudly South Africa Brand Criteria Iwrin (2004) states that companies that do business in South Africa are called upon to become members of the Proudly South African campaign brand. Only member companies can use the Proudly South African logo on their products to identify themselves to consumers. The criteria for membership are based on four factors: 1. The company?s products or services must incur at least 50 percent of its production costs, including labour, in South Africa and be ?substantially transformed? in the country, meaning that a company cannot merely import and repackage a product in order to be ?Proudly South African?. 2. The company?s products and services must be consistently high quality. 3. The company must be committed to fair labour practices. 4. The company must be committed to sound environmental policies. Proudly South Africa Brand Challenges According to Volkwyn in Brand South Africa (2010) South Africa has overcome some tough obstacles, both in its history and in recent times. However, many South Africans have achieved great things over the years, and people must focus their attention on the actions that have been done for the good and not on the deeds of a lawless few. According to Brand South Africa (2010) the campaign appeals to people to remember that their behaviour. This serves as an example to others and that positive action will have an immediate effect. Respect for the law of the land and compassion for fellow citizens, no matter what their station in life, is key to sustaining the positive vibe. Volkwyn in Brand South Africa (2010) mentions that being a media group, it is our obligation to unlock the leadership potential in this country. If we are to take our rightful place on the world stage and make this country the success that it deserves to be, each of us must stand up and do something. Lead SA in Brand South Africa (2010) encourages South Africans to stand up for 190 positive issues by doing the right thing, upholding the law, showing compassion and respect to others, and taking care of the environment. Leloup in Iwrin (2004) states that the Proudly South African brand?s goal is to grow from 3% to 4% per year through what is referred to in-house as a ?consumer education? campaign. This consists of mass communication, at its basic level, an above-the-line advertising campaign in magazines and newspapers and on local TV telling consumers about the Proudly South African brand. In addition, there is an aggressive Proudly South African billboard promotion across the country. The cost of goods differ in pricing and with the current economic downturn many consumers are looking at ways of economising. Cheap priced goods from abroad seem the best option. Iwrin (2004) mentions that consumers have indicated that while they are willing to buy South African products in principal, they feel that South African-made products and services do not have, on the whole, the quality levels of imports. This has become a sore point for local businesses. South Africans are especially susceptible to the allure of overseas brands that for so long were the forbidden fruit under apartheid-era sanctions. Further Iwrin (2004) states that there is a flood of ultra-cheap Chinese-made imports that started soon after the country?s liberation in 1994, has had a calamitous effect on, amongst others, the local textile industry. Proudly South Africa Brand Campaign Iwrin (2004) provides the significance of the Proudly South African brand: the logo expresses the national pride and as such clearly shows the South African flag. Leloup in Iwrin (2004) states that national pride and job growth are issues that the consumer has attachment. According to Leloup in Iwrin (2004) research over the last few years has shown that South African consumers varied, with each member of the family a committed shopper. This information has made the Proudly South African brand focus on an educational advertising programme which appeals to South Africans across spectrums of age, race and gender. Iwrin (2004) states that the campaign for Proudly South African brand has gone one step further in this regard to initiate a strategic partnership with the internationally respected SABS to ensure quality on all Proudly South African branded products. Proudly South African will assist SABS by offering the Proudly South African brand on negotiated terms to SABS client companies. Having this endorsement on the corporate image gives the company a benefited exposure and opportunities. 191 According to Iwrin (2004) discovering that becoming a member of the Proudly South African campaign can have a direct effect on a company?s ability to get successful tenders from the government and foreign companies are also competing for the label. According to Iwrin (2010) these successes have led the Proudly South African campaign to remind potential members which the government itself are decided to support the idea that Proudly South African members trade with one another and with the government itself. According to Superbrands (2005b) the Proudly South African logo will appear in the Superbrands large-format publication along with around 100 of South Africa?s leading brands, many of them members of Proudly South African. Superbrands (2005b) further mention that the outstanding brands which have already been confirmed to participate in volume one of the internationally distributed publications as below: ABSA, Adobe, Auto & General, Amarula, Armstrong, Avis, Bukhara, Cadbury, Cape Times, Carte Blanche, Cell C, Chateau Libertas, Coca-Cola, Cotlands, DStv, Discovery, Drum, Farmer Brown, Fanta, FNB, Gallo, Gra?a, Graduate School of Business UCT, Handy Andy, Hollard, Huisgenoot, Huletts, Illovo, Intel, Investec, King Pie, Klipdrift, McDonalds, Mercedes Benz, Metro FM, Microsoft, MTN, M-Net, Multichoice, Mugg & Bean, Nederburg, Nu Metro, News Caf?, Old Mutual, Omo, Orlando Pirates, OUTsurance, Pam Golding, Pioneer Foods, Primi Piatti, Proudly South African, Rainbow Chicken, Rand Merchant Bank, Russell Hobbs, SABC, SA National Parks, SA Cricket, SA Rugby, Sasol, South African Airways, Supersport, Schweppes, Scorpions, Sprite, Sotheby?s, Standard Bank, Steers, Ster-Kinekor, Sunlight, Telkom, The Mercury, The Star, University of Cape Town, Vodacom, Woolworths, YOU. According to Goddard in Superbrands (2005b) the Proudly South African brand is a fantastic campaign that has made a real difference to the way South Africans feel about local products and services. Brand South Africa (2010) states that the World Cup proved what South Africans are capable of, if they work with a common vision. Lead SA aims to remind citizens that it is within their power to take the initiative to change themselves and their country. 192 Cape Town Magazine (2010) states that call on locals and visitors to South Africa to help boost South Africa by engaging in the following: ? South Africa is alive with possibility and there?s no better way to boost our country?s beauty and potential than by supporting Proudly South African goods. The campaign encourages South African citizens, residents, and visitors who love South Africa to actively invest in the country and its people. ? The Proudly South African brand campaign was launched in October 2001 with the goal of encouraging South Africans to buy local. The campaign was based on the idea that boosting consumption of local products by South Africans and those visiting the country would lead to economic transformation and job growth in the country. ? At the heart of the campaign is the Proudly South African logo. Companies who meet the prescribed standards can use a number of different versions of the logo to identify themselves, and their products and services. ? Modelled on the successful Made in Australia campaign, the Proudly South African campaign has experienced rapid growth and captured the imagination of the local population. The Proudly South African logo can now be found on CDs released by popular South African musicians, on the sides of locally owned fishing trawlers, at shop entrances, on clothing, and on food packaging. ? The campaign now has close to 2,000 member companies who now bear the Proudly South African logo. Membership is not restricted and any company or institution may be eligible to join the Campaign provided they meet the Campaign?s membership criteria. ? Proudly South African is so much more than a marketing campaign. By buying Proudly South African products you are making a personal contribution to the strengthening of the South African economy. And the best bit is that as a consumer you get an assurance of quality because only quality products carry the Proudly South African mark. ? So the next time you are buying chutney at the local supermarket or trawling the markets for souvenirs from your trip to South Africa, make sure you look out for the Proudly South African logo. ? If you would like to register as a Proudly South African brand or find out more about the campaign, visit the Proudly South African website at www.proudlysa.co.za 193 According to Proudly South African (2010) purchasing Proudly South African, both consumers and businesses are making a personal contribution towards nation-building. Consumers get an assurance of quality because only quality products carry the Proudly South African mark. Members of the Campaign are furthermore committed to an uplifting ethos and socially responsible business practices which are reflected in the membership criteria. In this manner the campaign represents and stimulates the creation of a virtuous circle which benefits all. Proudly South African (2010) further mentions that membership is not restricted to a particular type of business or organisation. Any company or institution, whether it renders a professional service or is a manufacturing business; a public entity, sports body, school, tertiary institution, government department, municipality, NGO, town or city or even an individual, may be eligible to join the campaign, provided that they support the campaign?s overall aims and objectives and meet the campaign?s membership criteria. Figure 19: Proudly South Africa Source: http://www.brandchannel.com/features_effect.asp?pf_id=212 194 To qualify for the Proudly South African status the following is required. Local Content At least 50% of the cost of production must be incurred in South Africa and there must be ?substantial transformation? of any imported materials. High Quality Product The product or service must be of a proven high quality. Fair Labour Practice The company must comply with labour legislation and adhere to fair labour practices Environmental Standards The company must be environmentally responsible and adhere to production processes that are environmentally friendly and acceptable. Figure 20: Membership Criteria Source: (2010:http://www.proudlysa.co.za/section/about.asp?include=../area/about_us/about.html&title=../gfx/pages/about.jpg) Ballantyne (2008) states that when compared by multiple perspectives such as innovation, market share in their home country, efficiency and global expansion. Store for store, our retailers compare very well, and for a country that is so isolated we have produced a surprisingly diverse array of noteworthy retailers. Ballantyne (2008) further states that while they may not be the biggest, South African retailers can stand proud amongst the world?s retailers. The Proudly South African brand is a great concept which can benefit South Africa if it is embraced by all corporates in the business sector. This will indeed increase employment and assist the social dynamics of community development. CONCLUSION This chapter provided information on branded retailers of the following categories: Supermarket, Financial service provider, Clothing retailer, Fast food retailer, Cellular Service provider and the Proudly South African brand with outlining the African brand. It is good to note that these branded retailers are getting involved in community projects, it shows that they are concerned with challenges that many South Africans endure every day of their lives. The contributions made by these retailers are indeed commendable. The next chapter presents the strategies of brand communication used by branded retailers and it also outlines the theoretical grounding for this study. 195 C h a p t e r 7 BRAND COMMUNICATION INTRODUCTION The previous chapter presented an overview of some of South African branded retailers and the proudly South African brand. The contributions made by these retailers impact on the economic development of South Africa. The current chapter presents the strategies of brand communication used by branded retailers in order to advance their brand/s and it also outlines the theoretical grounding for this research study. The Public Relations Institute of South Africa (PRISA) defines public relations as management through communication, of perceptions and strategic relationships between the organisation and its internal and external stakeholders (Mersham & Skinner, 2001a:67). They further state that public relations definition also focuses on a managerial function which utilises various types of communication to achieve its goals. Einwiller & Will in Scheffer & Crystal (2008:62) state that successful internal communication and branding strategy has the power to establish and sustain the organisation with strategic competitive advantage. This also promotes for the internal organisational audience a shared identity, coordination, motivation, team spirit and synergy. Loewen (2001:10) states that in order to do business the depth of the message has to be closely linked to how one reaches ones market. An example, thirty-second advertisements can give coverage for your brand to the audience size that can fit into the First National Bank (FNB) stadium. Alternatively one could use a dedicated high-level sales force which will make on-site presentations to their current and potential customers. Using the latter option may only reach a narrow group of potential customers, but the advantage will be able to receive a valuable two-way exchange of information (Loewen, 2001). Smilansky (2009:3) states that marketing messages are communicated through media or other marketing channels that exist to communicate to different consumers or business sectors. 196 THE EVOLUTION OF COMMUNICATION Kimmel (2005:13) avers that much has changed in the way we communicate about brands. Internet and the World Wide Web as altered the way business is conducted. Humankind use communication in many ways to share and receive information about various subjects. Mass media and the digital age as brought a number of ways and applications in which one can communicate. Humankind has always communicated, using both small group communication, mass communication and various other methods of communication. The Bible records mass communication when Moses addressed the Children of Israel about Ten Commandments (Genesis, 20:2-17). Communication by humans developed over time. Klopper (2002:282) states that culture for humankind can been as four conservative phases of cultural evolution. These are made up of nomadic age, the pastoral age, the industrial age and the information age. Reddy (2004:13-16) outlined the following aspects of communication development: ? Nomadic Age: our nomadic ancestors used the following method of communication such as small group communication, consisting of interpersonal communication, verbal and non-verbal communication. ? Pastoral Age: is believed to have started about 10 000 years ago. Even though people depended on oral communication, writing and other forms of graphical representation emerged during this age. People wanted newer forms of communication to enhance their ability as communicators. Knowledge was passed by word of mouth long before books were published. Even when books were published they were for the elite or the so-called upper class. Before the reformation, only the clergy read the Bible and the laity had to accept whatever they were told. In 1452 the printing press was invented, which made knowledge more accessible however, the clergy controlled it. ? Industrial Age: is believed to have begun about 300 years. The Industrial Age gave rise to a community that moved away from the pastoral age of agriculture, to an age of urbanisation and industry orientated. The industrial age is about how people occupations have changed from working on farms to that of working in factories. The industrial age originated in Britain. The industrial age brought transportation, which had a great impact on the various communities in regards to transporting goods that were manufactured. The industrial age was an age of inventions and discoveries. Medical science has also made great inroads. The negative contribution of the industrial age was child labour, pollution and over crowded cities. People left their rural areas to settle in urban areas. Towards the end of the colonial era we witness how countries invested finances into the development of electronic communication, 197 telegraph, mass electronic forms of communication, as well as the radio and the television. ? Information Age: The achievements of the industrial age established the way for the information age. The 1970 gave rise to the information age. During this time there was a decline in the industrial production. Countries are part of an Internet-based, integrated global knowledge driven economy. These different countries have realised that if they do not move into this new era they will remain in the industrial age. An important feature on the information age is the networking of computers. According to Klopper (2002:16) the increasing availability of electronic communication networks as assisted in integrating the various aspects of the information age have provided facilities for eBanking, eCommunication, eCommerce, eEntertainment, eGovernance and eLearning. This has enable individuals to communicate with relatives that are near or far corners of the globe. Klopper (2002) further states that users can also pay monthly accounts via online banking facilities buy and sell products worldwide, play computer games against other users around the world. This provides the ability for users to watch movies, access data on government department websites, or obtain certificates and degrees by means of online distance learning (e-Learning). Users can do this at their leisure from any networked location in the world, including from wireless networks (hot spots) that allow mobile communication from busses and trains (Klopper, 2002). Within the education domain of the University of Zululand students are encouraged to move towards eLearning, students can access their assignments and communicate with lectures via Blog, Facebook and Emails. They also can turn in their work electronically to a specialised software programme (Turnitin) which assist students in assignments in doing so they able to avoid plagiarism. The Department of Communication Science also engages their students through virtual class room. Students are able to get current information about the studies. The site also integrates with social media outlets which are used for student interaction. With regard to the above forms of communication branded retailers are engaging them at a steady pace to ensure that their brands are visible. Smilansky (2009:3) states that two-communication can be delivered face-to-face or remotely between consumers and brands. 198 There are four ages and the last being (information age) which speaks about electronic communication. Much has evolved in ?Information Age? the rapid advancements in the digital world and the new ways of communication that allows the interacting of one another in a virtual world. Tech Target (2010b) a virtual community is regarded to be a community of people sharing common interests, ideas, and feelings over the Internet or other collaborative networks. Tech Target (2010b) further states the possible inventor of this term and one of its first proponents was Howard Rheingold, who created one of the first major Internet communities, called ?The Well?. Thus with the advancements of the digital and the cyber world we now enter into an age which could be referred to the Social Media Age. The Social Media Age (FaceBook, MySpace and Twitter and other Social Media Networking outlets) has changed the way we traditionally use communication. Although, this will not totally replace the traditional way of communication, it is being embraced by many frontiers. Both traditional and new communication will co-exist for decades to come. Klopper (2002:292) states that electronic communication enabled verbal, nonverbal and written communication to be integrated into a single space-time frame. One can directly hear and see another communicator from any side of the globe. This can also allow one to record these communication sessions and access them afterwards at one?s leisure. This integration process forms of communication has led to a new state of awareness that has become known as panopticism 2 , the ability to see 3 anything anywhere if one chooses to do so (Klopper, 2002). BRAND COMMUNICATION Brand communication is the exchange of meaningful messages through various mediums. These messages are designed to satisfy consumers? needs (Williams, 1992:21-22). Brand communication provides the consumer with vital information that informs about product updates and benefits. Branded retailers doing this with promote relationships. However, communication on the other hand can also be used to destroy and/or undermine human relationships. Communication requires a sender and recipient and the sender is the communicator. 2 See the article ?The future of Netcams? on the techtv website at http://www.techtv.com/techtv/ . 3 The term ?see? here metonymically refers to any way in which one can observe and understand events. 199 Consumers are part of communities where their discuss ideas, facts, opinion, feelings and even experiences about the brands or the retailer (Littrell, 1991:41). Branded retailers must take this into account and ensure that the customer is satisfied. Creative teams, in brand retailer organisations, ought to include this in their planning. The planner should use intrapersonal communication for brand advancement. Note that ideas, in the market place, are initially conceived in the minds of individuals within the corporate creative team. This is also influenced by the corporate culture. All ideas and discussions must be moulded around organisation?s mission and vision (Mersham & Skinner, 1999:148). In order for interpersonal communication to exist it has to go through one?s mind which is referred to the process of intrapersonal communication. This process is used by marketers, business executives and consumers alike. At times one can speak to one self especially when a consumer is trying to make up his/ her mind (Relationship with self, 2007). Interpersonal communication is also used extensively within the organisation which assists in the establishment of relationships between managers and subordinates as well as the marketer and the consumer (Mersham & Skinner, 1999:148). The brand establishes relationships between itself and the consumer. The branded retailer or consumer enjoys mutual satisfaction, reward, high productivity. Brand creative teams use interpersonal planning meetings, formal project discussions and pitching the ideas for the brand campaign. Interpersonal communication outside of the business organisation can take a variety of forms and is a part of the communication process (Answers.com, 2010d). The branded retailer?s success depends how they communicate with their publics. This is influenced by the communication process. According to Forest & Olson (1981:7) a communicator is an individual who starts the process of communication by engaging another. This process can be referred to as interpersonal communication where individuals swop roles of being a communicator and recipient. However, effective communication results when a person transmits a thought to another who in turn attaches meaning to this. Mastery of this process will be achieved when the message is effectively communicated. Albanese (2010) states that effective communication can be achieved by ensuring the brand?s message bring a desired return or if the message fails then the brand retailer can pin point the reason to what went wrong. 200 The Role of Public Relations and Communication According to Brown (2009:4) communication is in the process of undergoing a radical change. Brown (2009) continues to state that public relations practitioners of the 21st century must understand the changes that are taking place with communication sphere and how this is controlled and influenced. This is essential to their survival and must adapt in this new environment. Branded retailers communicate with their customers and stakeholders using various methods of communication. They must be able to ensure that they effectively use the expertise of their public relations manager or department. According to Mersham & Skinner (2001a:67) public relations practitioners are also required to produce media releases, annual reports, and magazines for employees or even an electronic/ online newspaper. S/he may also be tasked to create and manage communication campaigns that are designed for awareness or to change opinions about a certain subject matter on hand. Perceptions of the brand or branded retailer are important, how they communicate will determine how customers and stakeholders perceive them. Mersham & Skinner (2001a:67) state that perceptions are developed on how stakeholders perceive an organisation. These perceptions may be positive or negative depending on what the organisation has done and/or communicated. The accuracy of perceptions is largely determined by the quality of communication that has been implemented between an organisation and its stakeholders (Mersham & Skinner, 2001). Mersham & Skinner (2001a) continue to state that the responsibility lies with the public relations manager to determine and change any negative perception into a positive one. Mersham & Skinner (2001a:68) state that perceptions also deal with ?self-concept? of the organisation taking into account of the physical characteristics, such as corporate identity, the mission and vision statement. They further iterate that ?self-concept? is also partly developed from the feedback that is received from stakeholders (Mersham & Skinner, 2001a). Perreault & McCarthy (1996:422) state that each promotion method has its own strength and weakness and they in turn provide a comprehensive set of tools that deal with marketing communications. They further state that each method involves its own distinct activities that will require diverse types of expertise. Specialists with the necessary expertise will be able to provide plans and will be able to implement the same (Perreault & McCarthy, 1996). 201 Brand strategy must be measureable and provide a desired outcome. Fourie quoted by Mersham & Skinner (1999:40-41) the system of communication by objectives is viewed as a planned communication process that can be divided into four basic parts or stages: identifying of needs, formulating the objective, analysing the destination and arranging for feedback. Branded retailers have to ensure that they are strategic when it comes to communication and therefore a well-planned communication strategy must be implemented. Marketing managers must be aware of the inter-relationship when designing and planning their marketing message. Brand messages are seen as a code by consumers and tend to attach themselves (Infoplease, 2007). Codes can either been seen or read which expresses the brand?s message. Written communication is used extensively by marketers and the branded retailer (UNCG, (2010). Many colourful billboards, signs and digital signage were used and this also forms part of non-verbal communication. Branded retailers must ensure that they have effective organisational communication in place. All staff for the branded retailer must be properly orientated with all important information pertaining to the organisation. This is usually referred to as internal communication (Mersham & Skinner, 1999:4). Mersham & Skinner (2001b:8) state that communication is an essential ingredient for the smooth functioning of an organisation, and plays a vital part in the way the organisation exchanges information. Organisational communication is necessary to achieve that common purpose. This occurs in large co-operative networks and includes virtually all aspects of both interpersonal and group communication. Organisational communication provides the ability to maintain organised operation (Mersham & Skinner, 1999). Mersham & Skinner (1999:148) state that organisational communication often operates in levels, hierarchies and communication networks. Organisations generally implement hierarchical structures to facilitate effective communication. These levels of communication include intrapersonal communication, interpersonal communication and small group communication. Consumers use word-of-mouth communication effectively which influences their group of associates. This form of communication can impact a branded retailer either positively or negatively (Du Plessis & Rousseau, 2007:82). 202 According to Blythe (2006:144) this form of communication is powerful medium for marketers to use: ? It is interactive, involving a discussion between two or more parties. This forces the recipient to think about the communication. The problem for marketers is that the interaction takes place between parties who are not usually under the control of the firm. ? It allows for feedback and confirmation of the messages. ? The source, a disinterested friend or acquaintance, carries a lot more credibility than any marketer-generated communication. Blythe (2006:144) further mentions that people tend to talk about the experience with regards to the service they received and their recent purchase. This assists people who are in the process of making a purchase. Hamilton (2010) states that we live in a modern age that has diverse technology to advanced advertising techniques, word of mouth (verbal communication) still remains to be the most powerful advertising tools. Customers that fall prey to a deceptive advertising campaign will easily be able to start a campaign informing their friends and families, they will in turn continue this process, and soon the business?s reputation is possibly damaged beyond repair (Hamilton, 2010). Branded retailers must not discard this form of communication and think that it is concentrated in a small group. Consumers use small group communication at a larger scale since they express their satisfaction or dissatisfaction to family members, colleagues at work, neighbours and friends and this is usually done casually or at a social gathering. In reference to the branded retailer, mass communication is used at a larger scale to reach the audience. Branded retailers must ensure that the message is free from deception. Sykes (1983:246) states that to deceive is to persuade of what is false, to mislead purposely. Messages that branded retailer use must be reliable and trust worthy of which consumers must believe. Often consumers find themselves being misled with wording and illustrations. Deceptive communication is often used to advance sales in a variety of areas. This form communication misleads the consumer in a number ways. This can become dangerous and consumers tend to share these experiences and in a long run a brand could end up as non-currency. Media outlets can also pick up on these and this information can be transmitted through the use of mass communication. 203 Retailers make use mass communication in various ways to ensure that they reach their audiences (the consumer). Within this form of communication branded retailers make use of this to advance their market segment. They use both print media and electronic media. The print media deals with newspaper, magazines, handbills, tracts, and pamphlets and electronic communication consisting of radio and television and social media (Reddy, 2004:62). The use of mass communication allows the branded retailer to reaching many consumers as possible. This allows the branded retailer to disseminate product information. The exposure provides the branded retailer the opportunity to extend the market segment. South Africa has branded retailers such as the Game, Checkers, Pick n Pay, HIFI Corporation and many more. All forms of mass communication are characterized by the fact that there are no direct feedback loops between the recipient and the sender thereby rendering the sender unable to determine the impact of his/her message on the recipient. Reddy (2004:63) states that mass communication is the method of delivering information and knowledge, ideas and attitudes to a sizeable and diversified audience through a medium (example magazine, newspaper, radio and television). Mass communications are the most pervasive forms of communication (Reddy, 2004). Durmaskin (2010) states that print media advertising has two most commonly used forms for print advertising - newspapers and magazines. DIGITAL DIVIDE IN SOUTH AFRICA According to Ohnemus (2009:161) technology currently has decreased the potential for a sustained competitive advantage. This has caused managers to focus more on separating their brands on the basis of unique emotional, rather than functional, characteristics. Technology has forced them to re-think their global product strategies. The digital divide is a major concern to the business sector and in order for e-commerce/ e-business to reach all South Africans, the divide must be closed or made smaller. According to Kimmel (2005:11) there is a vast discrepancy between the rich and the poor globally. This has become difficult to comprehend than ever before, because this can be seen in real time through the advances in technology and the development of the Internet. Hartley (2003:243) comments on the old adage ?the rich get richer and the poor get poorer?. This financial divide between people with money, who can use it to their advantages to make more money and those without it end up living from hand to mouth. Hartley (2003) further states that in this modern age, the above adage is applicable to Information and Communication 204 Technologies (ICT?s) and intellectual and productivity benefits associated with them access to ICT?s. Those who have ICT access have benefited and accelerated way from those without access. This growing split between technological ?haves? and ?have-nots? that is referred to as the digital divide. According to Global Technology Forum (2007) the Telecommunications Action Group (TAG) supporters believe that the high costs of Internet bandwidth and telecommunications services are impacting negatively towards the country?s economic prospects. This causes businesses either not able to operate profitably or simply not willing to invest. Broadband Internet access in South Africa is among the most expensive in the world even when compared to African countries like Morocco, Egypt, Botswana, and Mozambique (Global Technology Forum, 2007). Many South Africans do not have personal computers (PC?s) or lap top computers that have Internet access. The gap is rapidly closing since wireless access is being out rolled and the convergence of communication applications (Social Media: MySpace, Facebook, Twitter, and other Social Network Sites outlets) providing the user with advance mobility has brought about a micro-computer merging into mobile phones. According to Kimmel (2005:14) the mobile phone has become a dominant feature of how the world is being recreated. Global Technology Forum (2007) further mentions that mobile phones have indeed increased rapidly in South Africa. Owning a cell phone was once regarded as a luxury item and today it has become an item of necessity. Cell phones are used by adults and children on daily basis. With the various operators within South Africa competing for dominance brings the user with good options and prices to choose from. Consumers are able to use the cell phone as an e-wallet. Money can be sent to a person?s cell phones anywhere in the country. Kimmel (2005) further mentions that text messaging is the fastest growing communication medium seen. This form of communicating can be done anywhere, anytime and anyplace. According to Tech Crunchies (2008) mobile phone penetration in South Africa currently is 83% of the population. This makes it a very attractive medium for marketing and advertising. The Multimedia Messaging Service (MMS) advertising market is thriving with response rates offering varying between (10% ? 25%) and unsubscribe rates often less than (1%). 205 Electronic Communication In South Africa many branded retailers have embraced electronic communication and is commonly referred to as e-communications. According to Knowledgeway (2010) this can provide a more meaningful communications tailored to the nature of your particular audience. In contrast to broadcasting, narrowcasting reflects the ability to develop numerous communications for subsets of your brand retailer?s constituencies. Mudambi (2002:525) states that the growth of e-commerce and global competition in business-to-business (B2B) has caused marketers to looking at branding, especially corporate branding, will improve their competitive position in the new economy. The power of branding is widely accepted in consumer markets. Internet and Brands According to Virtsonis & Harridge-March (2009:556) the Internet is one of the various media?s that a brand?s position can be conveyed. Companies can use their websites to deliver various messages including brand information. Loewen (2001:10) mentions that the Internet has positioned itself to be the next quantum leap in business evolution. The Internet allows one to transfer complex and large volumes of information at a very low cost. WORLD WIDE WEB IN BRANDS According to Cho et al. (2009:934) the rapid changing business environment has led many organisations to engage Internet technology and use the World Wide Web to report financial and non-financial information. Websites provide corporations unlimited space where they can place large amount information and save. Branded retailer such as Pick n Pay use e- communication where customers can visit their website and purchase groceries. Loewen (2001:11) states that communication is regarded as the glue that holds together the business world. E-commerce is the ability of viewing, buying and selling of products and services through the World Wide Web (Loewen, 2001:12). 206 Electronic communications is interactive. It engages audiences in active, two-way communication which requires a new way of thinking about advertising and the handling of public relations. The pay-off, however, is a self-selected audience, engaged and actively participating in the communications process (Knowledgeway, 2010). Many branded retailers have websites that are interactive where customers are able to view products or even engage in consultation using social media to connect to call centres. Chakraborty, et al. (2003:52) state that interactivity can take many forms, such as customer support activities (such as order status tracking, feedback options), market research activities (such as taking product surveys), personal choice helpers (such as key word searches, dealer locators), advertising/promotion/publicity activities (such as sweepstakes, multimedia shows, and user groups), and even entertainment activities (such as playing games) can be included in the website. These websites are also referred to as a home page and figure 9 provides a sample of a home page for Home Choice. Another interactive method that is found on the Internet is blogs and many companies use these blogs to provide various amounts of information. Many consumers have personal blogs of which they use to express their thought, opinions on a variety of issues. There have a number people following them as well as they also follow a number blogs of interest. These blogs can be ones that they have joined such as their favourite branded retailer (Blog Basics, 2004). Hartley (2003:1) states that Internet technology is powering information and communication is impacting most people?s minds. The vastness of web connectivity has changed how consumers behave in the market place and this changed the way companies conduct their business. For consumers Internet-related technology has had a profound impact. Hartley (2003:1-3) mentions the following six impacts of the Internet: ? The Network effect: the Internet is a platform that has ?hyperlinked? users and sources together into one vast network of networks. Anyone with a browser can connect with friends and colleagues anywhere around the world. Clever ideas and methods that used to lie hidden on isolated ?island communities? around the world can now be shared or traded, boosting activity everywhere. 207 ? Richness and reach of information: the explosion of information in the modern era is an abundant resource, but like the Witwatersrand reefs, it can only deliver its riches once the gold has been separated from the tons of rock. Again, the Internet is providing a platform for search engines and CRM systems to be used as tools to bring each one of us the richness we personally value- from a collection of tunes on a CD to that B&B on the beach in the Seychelles. ? Products become services: the trend towards renting utility instead of owning a product has received added impetus with the arrival of the Internet and mobile communication. Service providers are now empowered to be able to measure how their products are performing for us (like remote monitoring of alarm systems, we could even migrate to a pay-as-you-go system, being billed according to the way the car is driven and the type of trips the car is required to make. ? Fluid pricing: technology is improving the efficiency of markets all the time. There is less opportunity to rip off an unsuspecting customer, or discover and in Hong Kong can research prices of goods of property in Amanzimtoti without leaving her desk. But technology is also allowing prices of goods and services to float more freely. Hotels manage their levels of occupancy and rooms? rates constantly to maximise yield, as do airlines with their seats. These technologically-enabled developments have also influenced attitudes. Some tenders are now concluded by a reverse auction between the tenders, and stadium owners are even now under pressure to drop the price of last-minute tickets, thus filling the stands and maximising revenue. ? Convenience: e-Mail and cell phones are obvious example of how technology allows us to run our lives at our own convenience ? making last minute arrangements, meeting a friend in a crowded mall, even checking into a flight we might otherwise have missed. Internet banking, product research in advance of the shopping expedition, and interaction with our local and national government are areas where the Internet is already improving convenience in our lives. ? Law barriers to entry: unlike other technology revolutions, such as the relativity inexpensive and easy way of entering the marketplace, whether as a consumer, or as an entrepreneur starting a new line of business. New opportunities are discovered and exploited, with individuals setting themselves up as subcontractors, working from anywhere and contracted to anyone. Many retailers within South Africa provide their customers with e-shopping which allows a consumer to purchase their products online. South Africa (2008) mentions that in South Africa consumers love to shop, the number of online retailers grows continuously which is due to increasing access of the Internet. More consumers are doing shopping online, logging on to buy everything from books to wine to electronic equipment (South Africa, 2008). 208 Although the Internet brings a new dimension to the market place it also faces challengers. Internet Business Law Services (2007) states that increased sales for airline tickets reached R1.8bn in 2005, is the leading e-commerce business. There are many other major online retail marketplaces which include Kalahari.net, Digit Mall and websites of traditional retailers such as Pick n Pay, that provide an online grocery-ordering service (Internet Business Law Services, 2007). Internet researchers World Wide Worx in the South Africa (2008) states that there are over 800 retail websites in South African cyberspace. According to Ganesan (2009:84-85) the supplier?s direct online channels provide greater access to consumers which affect the decisions of supply chain management. Table 5 provide different categories of some online shops where one could purchase goods. 209 Online Malls Mweb Shopping Zone Everything you will expect to find in a shopping mall, all online. Website: http://www.mwebshopping.co.za Digital Mall Stocking more than 1 000 products across 12 online stores, Digital Mall was one of South Africa's first online retailers. Website: http://www.digitalmall.co.za Groceries Pick 'n Pay Home Shopping Avoid the drudge of the supermarket queues - do your grocery shopping from the comfort of your keyboard. Website: http://www.picknpay.co.za Woolworths Woolworths' full catalogue is available online, allowing you to browse for groceries, clothing and gifts. Website: http://www.woolworths.co.za Event bookings Computicket Online ticket sales for movies, theatre and live events, festivals, sporting events, and city to city bus trips. Website:http://www.computicket.co.za Online auctions Bid or buy On bid or buy, individuals and companies can sell goods either at fixed price or in auction format. The 10 top performing categories on bid or buy are Coins & Notes, Computers, Cellular Phones, Jewellery & Watches, Electronics, Gemstones, Household & Office, Antiques & Collectables, and Photography and Gaming. Website: http://www.bidorbuy.co.za Wine Not just for South Africa - the finest South African wines are now delivered anywhere around the globe. Check out websites: Cyber cellar www.cybercellar.co.za eWine eWinewww.eWine.co.za Wine Club South Africawww.wineclub.co.za WINEmag.co.zawww.winemag.co.za/content/ buywine/home.asp Wine of the Month Clubwww.wineofthemonth.co.za Flowers Net florist Offering a same day delivery service for orders placed before 12:00, Netflorist is South Africa's largest flower and gifting service. Website: http://www.netflorist.co.za Health and beauty Ascot Direct South Africa's largest online health and beauty store. Website: http://www.ascotdirect.co.za Books, music, DVDs Kalahari.net Selling everything from books, CDs and DVDs to movie tickets and electronic equipment, Kalahari is one of South Africa's biggest and most successful online retailers. Website: http://www.kalahri.net Exclusive Books The online shop of one of South Africa's biggest bookselling chains. Website: http://www.exclusivebooks.co.za Loot Loot have expanded their range to include CDs and DVDs, as well as a full range of discounted books. Website: http://www.loot.co.za Look and Listen The online version of the CD chain, Look & Listen's online store is open 24/7. Website: http://www.lookandlisten.co.za Musica Selling CDs, DVDs and mp3 downloads, Musica has more than 50 000 titles to choose from. Website: http://www.musica.co.za Electronics and gadgets Digital Planet With thousands of computers, cameras, cell phones and other electronic products in stock, Digital Planet has all the gadgets you need. Website: http://www.digitalplanet.co.za NGR Computers Online Web store Promising a "low-cost, efficient, personalised computer hardware shopping experience" online. Website: http://www.ngrcomputers.co.za Table 5: Online shops Source: (2008:http://www.southafrica.info/services/consumer/) 210 NEW MEDIA BRAND COMMUNICATION Kimmel (2005:170) mentions that smart or information-powered devices will enable organisations to use Internet and networked information in new and innovative ways. According to Brown (2009:25) the Internet is a fast delivery mechanism. This has become the preferred route through which one accesses television, radio, and the newspaper for information. According to Sitati (2009) branding has taken a major part in new media, brands have become established in our lives. This was accomplished by maximising the power of various media channels. Sitati (2009) further states that Europeans will spend over 2.5 days a month on the Internet and these numbers take on special significance when compared to the dwindling amount of time spent by the same population reading print media. The Internet- connected world as caused the ground to shift right underneath the feet of brands (Sitati, 2009). The Internet was responsible for the increased growth of the new media. Therefore these findings have major implications for brands in terms of what consumer needs they will satisfy and how they are positioned, communicated, distributed, and even consumed (Inter Brand, 2010). Sitati (2009) further states that the environment in which brands operate today are rapidly changing, virtually everywhere in the world. For many decades brand communication used the traditional path been linear which was controlled by brands. Social Network Sites There are many SNS or social media outlets that have already become popular among many consumers around the world. Many of these sites are well established. According to Blippr (2010a) Facebook provides customers the power to share information and connect with various contacts and businesses around the world. Facebook users are able to keep up with friends, upload an unlimited number of photos, share links and videos, and learn more about the people they meet. With the various developments in terms of communication especially the broadband connectivity as non-doubt cleared the way for the Internet to become the preferred medium. The digital divide of Africa is fading away rapidly as companies such as Neotel, Vodocam, MTN and other service providers innovatively move this process. 211 Sitat (2010) states that brands will find themselves increasingly unable to ignore this development. The increase for portability/mobility is on the increase especially the huge demand on social media applications which instantly connect a mobile phone user. Klopper (2002:289) states that overseas in many urban centres, people that are mobile regularly have migrated to cable-free wideband access to the Internet via wireless broadband networks on notebook computers, tablet PCs, mobile phones, and personal digital assistants (PDAs). Klopper (2002) further states that the mobile phone grew impressively in the South African market, providing local mobile phone users the ability to link to the Internet via their mobile phones, or via hand held PDAs. According to Sitat (2010) Internet penetration spikes based on the number of eyeballs on the computer screen will actually decline. Europe Logs On in Sitat (2010) states that 50% of Internet usage on personal computers will drop in the next five years. Many will move to other gadgets such as IPTV, game consoles, and mobile phones. Branded retailers must engage social media communication and ensure that their brand is visible. South African organisations should take advantage of the 2.6 million Facebook users to advertising platform to capture this segment. The social platform registered 350 million users by December 2009, offering a wide audience locally and worldwide (IT News Africa, 2010). Social Media Communication Social media communication is a new way of influencing, sharing, engaging users that are members of social media networks that form a virtual community. Richards (2007) states that Internet is being changed and is becoming far more powerful than the one which lets you link up with your friends or watch a video uploaded by a stranger. Sitat (2010) states that Kenya has nearly half its population (43.64%) now connected via mobile phones, more than half the market that can be counted upon to exercise what economists call ?effective demand.? This means that a majority of the mobile phone consumers are actually have the ability to engage this online market and purchase brands. Loubser (2008:9) states that YouTube technology continues to change the landscapes. Sitat 2010) mentions that the shifting from computers to cell phones is something for branded retailers to consider. This shift is particularly true among youth and the so-called young at heart, for whom the short message and phone call seem to be receding. The evolution of 212 technology has changed the screen in which consumers see and therefore it is important for brands to know which screen consumers are glued to. According to Cake (2008) economic development of the next stage will be driven by online social, industry and political networks based on person to person online networks that connect global communities. He further comments that Web1.0 delivered the Internet and connected large numbers of people and Web 2.0 technologies demonstrated the ability to assemble and manage large global crowds with a common interest in social interaction. According to Richards (2007) engineers will soon been able to build the Internet of tomorrow, where the web will be able to connect every aspect of our digital lives. Harden & Heyman (2009:237) state that sites which are used to communicate with one another. SNS have many sites and figure 21 clearly illustrates that Facebook since May 2010 has (54.9%) usage and it is increasing by the day. Branded retailers in South Africa must make full use of social networking in their business. Figure 21: Top 10 Social-Networking Websites & Forums by US Market Share of Visits (%) May 2010. Source: (2010:http://www.marketingcharts.com/interactive/top-10-social-) 213 Richards (2007) states that Facebook, YouTube and the other social networks and blogs that fall within the scope of ?Web 2.0?may be beginning to penetrate the mainstream. Cake (2008) mentions that Web 3.0 will provide online network concepts to industry, politics, economic development, climate stability, poverty and democracy. Web 3.0 is online networks that allow people to see through the community or market and facilitate collective matching. Web 3.0 also makes learning and consumption quicker and reduces months to hours. Web 4.0 achieves a critical mass of participation in online networks that deliver global transparency, governance, distribution, participation, collaboration in key industry, political, social and other community endeavours. Web 4.0 delivers community sovereignty to channels and information (Cake, 2008). Figure 22:Economic development Source:Cake (2008:http://www.marcuscake.com/web1234explained.html) 214 Cake (2008) provides an analysis of the progression of the innovative developments of how the Internet has evolved in time and where it is heading in the future in figure 22: ? Web 1.0 (Read/distribute): In the early part of the 1900s, the majority of economic activity was in agriculture, mining and manufacturing. The information and services economy did not emerge until later in the century. The management of organisations was labour intensive and complex structures to manage information and coordinate their activities. During the 1900?s, these elaborate structures expanded to encompass more products, services and countries. Over the last half of the 1900s, information was digitised and the tools to manipulate it converged. The development of information technology reduced cost and allowed these organisations to manage larger organisations and product sets across countries. In 1990s, the Internet provides organisations with a means to distribute basic information to their communities of interest and undertake basic transactions. New organisational structures were not possible. The complementary technologies were not fully evolved and global Internet usage by the global community approximately 10%. ? Web 2.0: participation gave us an insight into what is possible: Web 2.0 demonstrated the technology to assemble and manage large global crowds with a common interest in social interaction. Large numbers of people joined the Internet with broadband penetration reaching 90% in many major economies. Web 2.0 is characterised by information of little inherent value and revenue was derived from third parties wanting to show advertising to eyeballs. Organisations are exploring the potential of Web 2.0 enterprise innovation or industry model innovation with single point solutions such as wikis and forums. However, enterprise or industry innovation will be derived from the full application of Web 3.0 online networks concepts, rather than Web 2.0 point solutions. ? Web 3.0: transforms industry and politics with peer to peer structures: The Internet provides a costless distribution channel that can connect more than one billion people peer to peer. Major economies are now dominated by 70% services which are information based. Individuals can now create online networks in 90 days for US$25k. These online networks will reshape industry and political systems. Web 3.0 online networks allow people to see through the market or community and collectively match, learn, consume information in hours not months. ? Web 4.0: transforms the world with a critical mass of social, industry and political networks: Web 4.0 achieves a critical mass of participation in online networks that deliver global transparency, governance, distribution, participation, collaboration in industry, political and social networks and other key community endeavours. Web 4.0 delivers community sovereignty to channels and information. Global Web 1.0 channels were created over 100 years of mergers, acquisitions and organic growth. Global Web 3.0 online social, industry and political networks can be 215 created within 12 months. The potential of achieving rapid economic development outcomes in very short time frames in real. Cake (2008) further mentions that the web is evolving and is becoming more and more intelligent as information and new software programmes continues to be developed social media will continue to advance. Richards (2007) states that the web is been made smarter. According to Spivack in Richards (2007) the community of Silicon Valley refers to Web 3.0 as the semantic web. Web 3.0 deals with the radically overhaul of the basic platform of the Internet so that it ?understands? the near infinite pieces of information that reside on it and draws connections between them. Hubpages (2010) states that Web 4.0 is the future of web technology and most of them concluded that Web 4.0 would be similar to what is referred to Artificial Intelligence (A.I.). Branded retailers must use these developments to advance their brands and increase their cyber segmentation. Digital Brand Engagement The business world of today is no longer only using traditional methodologies to conduct expose their market presence they are rapidly engaging social media. Social media has become a new market segment, one that is driven by the recommendation of social media citizens. This is an influence that many businesses are embracing. Geiger (2009:38) states that there are a number of social-networking sites from which one can choose from. The most popular ones are Facebook, MySpace, LinkedIn and Twitter. These new applications provide a gold mine of opportunities making the work of a freelancer easier and more profitable. Liu et al. in McLennan & Howell (2010:11) avers that social media networks provides organisation an opportunity to establish relationships with publics and also use this to provide company and product information. According to Graham (2010) many brand owners are considering social media. On a daily basis headlines highlights the new eye-popping growth stats of Facebook which grown by one million to 200 million users in less than five years. Facebook allows people to report or get breaking news. Twitter became the de facto source of information when Iran expelled all foreign journalists during the last election. Market reporting is quick and easy example massive shifts in marketing budgets (Forrester Research predicts U.S. online marketing spend to reach 216 US$ 25 billion in 2009 and US$ 50 billion by 2014) (Graham, 2010). Facebook and Twitter can be dubbed as the virtual journalist. According to Graham (2010) the consumer products sector is the most visible participant when it comes to the social media realm and, it is for this reason it is reaping most of the rewards. Graham (2010) states that Dell in 2007 has generated US$ 3 million in revenue from its DellOutlet Twitter feed, and Nike received double-digit market share. This was attained through the Nike community, which encourages runners to log in and record their times while competing with other users. All Business (2008) states that South African subscribers increased from 42.4 million in 2007 to 48.5 million in 2010 largely due to a rise in the wireless penetration level from 88.5% to 94.8%. South Africa increased mobility in South Africa places the branded retailer at advantage to exploit and increase brand presence by engaging the consumer through their cell phone. According Besharat (2010:1) Apple launched the iPhone, an Internet-connected smart phone, which caused its rivals in the cell phone industry worked furiously to introduce similar prototype. Besharat (2010:1) further states that Google earns profits on the basis of advertising that appears on its online products and services. THEORETICAL GROUNDING FOR BRANDED RETAILERS In this chapter the various aspects of communication that involves the branded retailer is outlined. In this section the challenges of communication strategies faced by branded retailers will be elaborated. To conceptualise this study the following theoretical approach of communication models will be evaluated with the use of social media to advance the awareness of branded retailers: 1. The Two-way communication model by Mersham & Skinner (199:10) and the manner in which these processes influence the interpretation of the messages by both the sender (branded retailer) and the receiver (consumer). 2. Shannon?s communication model is unpacked to explain flexible accounts of human behaviour and its variable relationships. The channel actually dictates, or severely influences, the message - both as sent and received. 3. The incorporating of social media applications in conjunction with above two models. 217 Overview of Mersham & Skinner?s Model According to Mersham & Skinner?s (1999:10) the two-way communication model also includes an interactive nature of communication. Figure 23 illustrates how branded retailers and consumers are both the ?communicator? and the ?recipient?; both participate in this process. This is called interpersonal communication. Figure 23: Communication as a Two-way Process A Model of the Bi-directional Communication Process. Adapted from Mersham & Skinner 1999:10 THE MERSHAM & SKINNER?S COMMUNICATION PROCESS Figure 23 graphically illustrates the communication process. Mersham & Skinner (1999:10) state that the communication process is made up as following: ? First, the communicator (branded retailer) or the source which primarily originates the message (brand campaign). The source or communicator may be an individual (branded retailer) or several individuals (chain store) working together, a committee (advertising agency) or an organisation (Multi-National branded retailer). ? Second, the message (brand campaign) is the idea and information that the source (branded retailer) transmits to the recipient (consumer). ? Third, messages comprise of signs and symbols (product information). ? Fourth, to encode a message is to change its meaning into a series of signs and symbols, such as language, for transmitting. ? Fifth, a channel (print and electronic media) is the means by which a message travels from a source to a recipient. ? Mersham & Skinner (1999) further state that the progress to number six, the recipient is the person or persons (consumer/s) receiving the message/s. ? Seventh, the communication effects are the changes in the recipient behaviour that occurs as a result of the transmission of a message. ? Eighth, feedback (purchase) is a response, by the recipient, to the source?s message. 218 Message Signal Signal Received This process confirms that communication has taken place. Negative feedback (none or limited response from consumers) informs the source (branded retailer) that the intended effect of the message was however not accomplished. Positive feedback (a good response from consumers) on the other hand, informs the source that the intended effect of a message was accomplished. Communication to branded retailers is important to ensure the message getting out. Doyle (2002:241) states that the communication process is defined as the transmitting and the receipt of a message. Naidoo (2008:34) states that communication must be purposeful and coordinated to achieve desired results. Overview Shannon?s Model Perreault & McCarthy (1996:426) state that a promotion is wasted if it does not communicate effectively. There are many reasons why a promotional message can be misunderstood or could not be heard at all. The understanding of the communication process is important when one is communicating. Foulger (2004) states that Shannon?s (1948) model for communication is important because it provided for the first time, a general model of the communication process. This serves as common ground of such diverse disciplines as journalism, rhetoric, linguistics, and speech and hearing sciences. Foulger (2004) continues to state that part of its success is due to its structural reduction of communication to a set of basic constituents that not only explain how communication happens, but why communication sometimes fails. Figure 24 illustrates the communication process according to Shannon. Figure 24: Shannon's (1948) Model of the communication process In the similar process of Mersham & Skinner?s model, Shannon?s model also illustrates a source, encoding, message channel, decoding and receiver. The added aspect of ?noise? is included and the two-way communication as indicated in Mersham & Skinner?s Mode is not emphasised. Shannon?s Model speaks about communication starting from the source and ends by the receiver. Message Noise Destination Information Source Transmitter Receiver 219 THE SHANNON?S COMMUNICATION PROCESS Foulger (2004) outlines the eight aspects of Shannon?s model: 1. The information source presumably a person (the branded retailer) who creates a message (brand campaign). 2. The message (brand campaign), which is both sent by the information source (the branded retailer) and received by the destination (the consumer). 3. A transmitter (channel example, print and electronic media). For Shannon's immediate purpose a telephone instrument that captures an audio signal, converts it into an electronic signal, and amplifies it for transmission through the telephone network. Transmission is readily generalized within Shannon's information theory to encompass a wide range of transmitters. The simplest transmission system that associated with face-to-face communication has at least two layers of transmission. The first, the mouth (sound) and body (gesture), create and modulate a signal. The second layer, which might also be described as a channel, is built of the air (sound) and light (gesture) that enable the transmission of those signals from one person to another. A television broadcast would obviously include many more layers, with the addition of cameras and microphones, editing and filtering systems, a national signal distribution network (often satellite), and a local radio wave broadcast antenna. 4. The signal (specific information), which flows through a channel. There may be multiple parallel signals, as is the case in face-to-face interaction where sound and gesture involve different signal systems that depend on different channels and modes of transmission. There may be multiple serial signals, with sound and/or gesture turned into electronic signals, radio waves, or words and pictures in a book. 5. A carrier or channel, which is represented by the small unlabeled box in the middle of the model. The most commonly used channels include air, light, electricity, radio waves, paper, and postal systems. Note that there may be multiple channels associated with the multiple layers of transmission, as described above. 6. Noise (competitor brand retailers, variety of products and doubt.), in the form of secondary signals that obscure or confuse the signal carried. Given Shannon's focus on telephone transmission, carriers, and reception, it should not be surprising that noise is restricted to noise that obscures or obliterates some portion of the signal within the channel. This is a fairly restrictive notion of noise, by current standards, and a somewhat misleading one. Today we have at least some media which are so noise free that compressed signals are constructed with an absolutely minimal amount information and little likelihood of signal loss. In the process, Shannon's solution to noise, redundancy, has been largely replaced by a minimally redundant solution: error 220 detection and correction. Today we use noise more as a metaphor for problems associated with effective listening. 7. A receiver (visually or audibly). In Shannon's conception, the receiving telephone instrument. In face to face communication a set of ears (sound) and eyes (gesture). In television, several layers of receiver, including an antenna and a television set. 8. A destination (the consumer). Presumably a person who consumes and processes the message. The Role of Branded Retailers and Customers in Mersham & Skinner?s and Shannon?s Model Doyle (2002:241) states that in order for communication to take place there as to be two parties. Perreault & McCarthy (1996:426-427) explains that the communication process is when the source the sender of the message to reaches the ?receiver? (a potential customer). Perreault & McCarthy (1996) states that research have indicated that customers evaluate not only the message but also the source of the message in terms of trustworthiness and credibility. The noise is any distraction that reduces the effectiveness of the communication process. Conversation and snack-getting during television advertisements are regarded as noise. Advertisements that are cluttered in newspapers are also referred to as noise. Therefore planners must take this into account when laying advertisements (Perreault & McCarthy, 1996). According to Perreault & McCarthy (1996:427) the difficulty in communication process occurs during the encoding and decoding process. ?Encoding? is the source deciding the message to be sent and translating into words and symbols that will have the same meaning to the receiver. Decoding is the receiver translating the message. At this stage meaning can be altered since it is dependent on the attitudes and experiences of the two groups. Therefore it is vital when communicating this to ones audiences s/he must consider the message since it could mean or be interpreted differently. Perreault & McCarthy (1996:427) provide the following illustration: Coors encouraged its English-speaking customers to ?turn it loose,? but in Spanish the phrase meant ?to suffer from diarrhoea.? Next, Frank Perdue said, ?it takes a tough man to make a chicken tender,? Spanish speakers heard. ?It takes a sexually stimulated man to make a chicken affectionate?. 221 Further, Perreault & McCarthy (1996:427) state that communication process is complicated since the receiver knows that the message is not only coming from a source but also through some message channel, (the carrier of the message). Analysis of Mersham & Skinner?s and Shannon?s model for effective communication Social media is becoming more and more visible in the market place. Branded retailers ensure that they explore the benefits of these innovative forms of communication. Easy Communication (2006) mentions that communication is the sharing of ideas or feelings with others takes place with other achieving understanding. According Mersham & Skinner (1999:10) in order for the two-way communication model to be consider effective the sender and receiver switches roles. The sender (branded retailers) switches roles with the recipient (the consumer) thus the sender becoming the recipient and the recipient becomes the sender. In regards to switching of roles as indicated by Mersham & Skinner (1999) branded retailers have measure this process by consumer traffic, how many visited the store and what volume of brands have translated into sales. In order for branded retailers to engage the consumer market they must ensure that they understand the communication process. Shannon model speaks about noise which could be regarded as be more variety is provided to consumer to choose from or it could simply be regarded as distractions and irritations to the message. According to Du Plessis & Rousseau (2007:92) marketing communication is information being communicated between a seller and a potential buyer. INCORPORATION OF SOCIAL MEDIA FOR BRANDED RETAILING According to Tubbs & Moss (1978:8) interpersonal communication takes place between individuals. Interpersonal communication is most often face-to-face communication, example consumer and the branded retailer. Mersham & Skinner (2001a:6) mention that interpersonal communication is a process between two or more people face-to-face encounter. Figure 23 indicates this process of Mersham & Skinner?s two-way communication model. Both Mersham & Skinner?s and Shannon?s model provide a clear process of communication which branded retailers can use to ensure that they will impact their market segment. Mersham & Skinner?s model is a two-way communication process which provides feedback when the sender and recipient switches role. Shannon?s model operates in a similar way with special significance of 222 ?Noise? which can be interpreted as interference of a branded retailer?s message by a competitor/s message. Personal Communication Figure 25 can be regarded as a form of personal communication. A number of consumers prefer this type of interaction. It becomes relational and a sense of trust is developed and a successful sale is often secured. This interaction is usually occurs in the branded retailer?s store where a meaningful discussion and feedback can be achieved. This form of communication is straight forward, personal and usually is instant. Figure 25: Face to Face communication The use of mass media communication reaches a larger audience but never face-to-face as in figure 25. In mass media communication, print media is impersonal unless it is specifically directed to a person (branded retailer?s public). Electronic media is also impersonal unless the message is directed personally to a specific individual. In regards to social media communication with one another can be private or it can reach a number of contacts within ones social media network. Face Face 223 The figure 26 illustrates the development process of communication for face-to-screen and screen-to-face unlike face-to-face communication in figure 25. When social media is used by branded retailers it often incorporates the models of both Mersham & Skinner and Shannon. This provides a role change for the recipient (the consumer) who can become a very powerful person in regards to indirect marketing and advertising for the brand. Figure 26: Face to Screen and Screen to Face communication The user who is the communicator (the branded retailer) communicates via the channel (social media) to the recipient user (the consumer). The message is communicated through social network sites (SNS). Consumers using social media can introduce or be introduced to a variety of branded retailers or brands through what is referred to as sharing. Due to the relational process that is enjoyed by both consumer and branded retailer, the consumer as no reservation to share this with his/her contacts. Face Face User: Communicator User: Recipient Channel: (Social Media) Facebook, MySpace, Twitter. Screen 224 The sharing conducted by the consumer is clearly illustrated in figure 27 as a move from an individual to many (virtual community). Social media allows consumers to connect instantly with brand retailer or other customers. Mobileman (2010) states that it is a community that is made of people who have no contact in the real world, but only over a technological system (virtual network), by engaging on discussions or by communicating or by having the same interests they share in the virtual world. Once the message (brand campaign or sale) is transmitted or sent via a social network site the message will be shared within a virtual community (many-to-many). Figure 27 illustrates how the communicator uses social media to connect to their contacts in the virtual community. Figure 27: Face to Screen and Screen to Many F a c e F a c e F a c e F a c e F a c e User: Communicator Virtual Community (Multiple recipients) Channel: Social Media Facebook, MySpace, Twitter. Face F a c e Screen 225 Figure 28 illustrates a user communicating via an SNS to a virtual community where each user has a number of virtual contacts and each of them in turn have their own virtual contacts. This form of communication through SNS can have exponential benefits for the user (branded retailer). Thus, branded retailers will be able to get greater exposure than just using traditional print media. Figure 28: Face to Screen & Screen to Many & Many to Virtual Network of Communities Branded retailers using social media for communication to their consumers will no doubt add to their market segment. This works through cyber communication or virtual communication. Janlert in Bengtsson (u.d.) states that the conception of computers as social actors opens up new possibilities for what is been called ?virtual communication?. This is communication in which one or more parties are fictive, or deviates so strongly from the perceived interlocutor that the communication becomes imagined or untrue to reality in one or more respects. According to Janlert in Bengtsson (u.d) virtual communication engages in modern information technology. According to Bengtsson (u.d.) the use of modern information technology will allow us to control interfaces to such an extent that what would normally constitute ?real? human-to- human communication is virtualised. The converse is also true: using more and more sophisticated techniques (example, for facial animations and speech synthesis), interactions between people and machines may become deceptively ?real?. Bengtsson (u.d.) further states that with virtual communication we are likely to face a rapid growth of, and an increasing population of virtual agents whose messages we will be forced to be taken seriously. User: Communicator Virtual Community (Multiple recipients) Channel: Social Media Facebook, MySpace, Twitter. Screen F F F ac e F F ac e F a c e F a c e F a c e F a c e F a c e F a c e Virtual Network of Communities 226 SYNTHESIS The researcher proposes the following theory to characterise how branded retailers use social media as a form of virtual communication in order to focus on their consumer interactions. Social media communication is an interactive, strategic communicative act, cognitively and socially constructed from subjective experience and inference, underpinned by brand segmentation gaining strategies in the management of interpersonal social media relationships. The theory has the following corollaries: ? Communication is defined as a process of conveying a message, a thought, or an idea in such a way that the message is received and understood. ? The process of communication entails transmitting messages to fulfil a need. ? Culture is a fragile phenomenon, continuously changing and easily lost because it exists merely in our minds. ? A virtual community comprises people sharing common interests over collaborative networks. ? Word of mouth is a powerful communication medium and could be used effectively by marketers. ? Communication strategies are consistently evolving and branded retailers have embraced social media to engage customers within and their market segments and virtual segmentations. ? Social marketing entails the use of social networks such as MySpace, Facebook, Wikis and online forums to spread a marketing message. ? The methods have changed from face-to-face communication into face-to-screen and are rapidly moving into virtual communication of screen-to-many and screen-to-virtual network of communities. ? Media refers to the forms of communication such as, television, radio, and the newspaper, including press or news reporting agencies. In the computer world, ?media? is also used to refer to different types of data storage options. ? In order for the organisation to function effectively, policies, reports, instructions, rules, orders and agreements, have to be conveyed in written communication. ? Brand identity is defined as a set of brand associations, created and obtained by marketing. 227 ? Public Relations are the management, through communication, of perceptions and developing strategic relationships between an organisation?s internal and external stakeholders. ? Social responsibility in marketing covers an array of issues, including the concept of consumerism. ? Compliance gaining involves persuasion, which aims at getting others to act in a certain way. Compliance gaining research deals mainly with behavioural change. ? Groups represent a powerful persuasive force. CONCLUSION This chapter focused on brand communication and the theoretical framework for the study of an evaluation of Branded Retailing on Consumer Behaviour within a Public Relations context: A Study of the Influence of South African Name Brands on Consumer Behaviour: that enables one to do research on communicative aspects of consumer behaviour. With regard to the conceptual aspect of communication, Mersham & Skinner?s and Shannon?s theory of communication presented the appropriate framework to account for how branded retailers connect and network with consumers through e-communication, and use social media to increase market segmentation in a virtual community. The next chapter explains the research procedures that were used and how the coding process was constructed. 228 C h a p t e r 8 RESEARCH PROCEDURES INTRODUCTION The previous chapter focused on the brand communication which concluded with theoretical grounding for this study. This chapter provides insights into the research methodology techniques which are used in this study. The various aspects relate to the specific methods of research used. This was done to ensure that the appropriate technique for this research study was utilised. This chapter further outlines how the data was captured by providing snapshots of the coding process. It also presents the ?Variable view? and ?Data view,? and verification for accuracy of the coding process of SPSS 17. THE NATURE OF THE RESEARCH This study was analytic in nature and the qualitative aspect entailed empirical literature study. The quantitative study entailed research methodology which was based on sampling techniques, fieldwork, questionnaires, and the appropriate form of statistical quantification using the analytical programme, SPSS 17, and the interpretation of the results in terms of parameters of significance projected by SPSS 17. The Sampling Procedure According to Malhotra (1999:328) a population is the collective of all the elements, which share some common characteristics and that comprise the universe for the purpose of the marketing research problem. Malhotra (1999) further states that the population parameters are usually numbers, for an example the number of consumers who are loyal to a particular brand of toothpaste. The sampling unit refers to the entity which is the focus of the survey. Blanch et al. (2006:134) state that effective sampling ensures that elements selected for a sample accurately resemble the parameters of the population they were selected from. Rampersad (2007:32) states that in order to be able to select sample units one will be require a sampling frame. Proctor (2000:89) states that a sample frame is simple list that deals with identification the target population. It comprises of list of names and telephone numbers, as in telephone surveys, hosing maps and addresses purchased from a mailing-list data base. 229 According to Welman et al. (2005:57) mention that a sample should be representative of the sample frame, it is impossible to judge the representativeness of the obtained sample properly. A sampling frame comprises of a complete list that has all the units from which a sample is drawn (Rampersad, 2007). In order to determine whether the sample size actually represents the population parameters; one has to consider what influences sample accuracy. According to Proctor (2000:87) sampling is influenced by following three decisions: ? Who is to be surveyed? ? How many people/ companies should be surveyed? ? How should the respondents be chosen? According to Bertrand & Hughes (2005:65), sampling is regarded as a positivist term for selecting a smaller group to represent a larger group, allowing generalisations from the results. SAMPLING METHODS According to Rubin et al. (2005:209) data collection typically entails in the selecting a sample of people to talk with, messages, analyse, events to observer, or artifacts to examine. Rampersad (2007:134) states that an important requirement for a good sample is that each unit in the target population be given an equal opportunity to be included. Rubin et al. (2005) states that there are standard methods of selecting a valid sample of people from the population. Rampersad (2007) further states that to making inferences about the target population, most researchers use a probability sampling procedure. This can be divided into two broad categories i.e. probability and non-probability sampling. Welman et al. (2005:56) state that the advantage of a probability sample enables us to indicate the probability with which sample results (for example sample means) digress in different degrees from the correspondence population values (for example population means). According to StatPac Survey Software (2009) when the population is too large for the researcher to attempt, a small, but carefully chosen sample can be used to represent the population. The sample reflects the characteristics of the population from which it is drawn (StatPac Survey Software, 2009). Due to the nature and scope of this study, it was decided that a questionnaire would be utilised and interviews (structured and semi-structure) were conducted on a random basis. 230 NON-PROBABILITY SAMPLING According to Babbie (2007:183) social research is often in situations that do not permit the kinds of probability samples used in large-scale social surveys. An example if one wanted to conduct a study on the homelessness. There is no list of all homeless individuals, nor are you likely to create such a probability sampling would not be appropriate even if it were possible. It is for such reasons that call for nonprobability sampling. Non-probability sampling methods produce a sample which bears no known relationship to any population. Non- probability samples can be used within a positivist or post-positivist framework, for exploratory research before hypotheses are developed for more rigorous testing or within non-positivist research where the results are not intended to be generalised to a whole population (Bertrand & Hughes, 2005:67). Rampersad (2007:134) and Rubin et al. (2005:209) states that commonly used is the non-probability sampling techniques that includes convenience sampling, judgemental sampling, quota sampling, and snowball sampling. PROBABILITY SAMPLING According to Rubin et al. (2005:209) probability sampling allows us to generalise from the sample being observed to the entire population from which that sample is chosen. Probability sampling methods produce a sample which is statistically representative of a large population, allowing generalisation from the sample to the population, on the assumption that repeated sampling would produce similar results, so that sampling error can be measured (Bertrand & Hughes, 2005:66-67). According to Malhotra (1999:334) the selection of sample units are selected by chance. There is possibility to pre-specify every potential sample of a given size that could be drawn from the population and as well as the probability of selecting each sample. Malhotra, (1999) further states that every potential sample does not have to have the same probability of selection; however, it is possible to specify the probability of selecting any particular sample of a given size. 231 The Sample Size According to Bertrand & Hughes (2005:65) if one is not aiming at generalisability, there are no rules for sample size this depends on what your purpose is, in some cases a large sample will be wise, and in others a single case, provided it is information-rich, is sufficient. If one is aiming at generalisability, then it will require the sample to be highly representative of the total population, however a large sample size does not guarantee it to be representative (Bertrand & Hughes, 2005). According to Dobbert in Marshall & Rossman (2011:103) in order to justify a sample, one should know the universe of the possible population and its variability and then sample according to all of the relevant variables. Since this is an impossible task, the best compromise is to include a sample with reasonable variation in the phenomenon, settings, or people. Bertrand & Hughes (2005) further state that the 1936 US presidential elections pre- poll survey of voting intentions received 2,500,000 responses to a survey sent to 12,000,000 persons selected from telephone directories and automobile registration lists, but failed to predict the success of Roosevelt, because those who owned cars and telephones did not accurately represent the voting population. This caused the polling organisations to refine their technique till quite a small sample could predict with remarkable accuracy the projections for major opinion polls, ones that are reported in newspapers, are made of approximately 2000 respondents (Bertrand & Hughes, 2005). According to Mouton (1996:132) in everyday life, sampling is similar to selection. Although this may be work on the assumption that sampling in everyday life is reliable, that is, that it represents that population from which it is selected, this may often may not be the case. Sampling in everyday life is usually haphazard and unsystematic and unsystematic and hence often results in decisions being based on inaccurate information (Mouton, 1996). 232 Bertrand & Hughes (2005:66) state that one may have to adapt one?s sample size by reference to the following: ? The time and money available to you (smaller samples are cheaper and take less time). ? What you already know about the population, and hence how confident you can be of identifying a representative sample (so stratified sampling requires a smaller sample for the same level of accuracy as simple random sampling). ? How many variables you are measuring (in general, the more variables, the larger the sample size). ? For questionnaires and surveys, the expected level of non-response (a high level requires a larger sample). Malhotra (1999:332) provides the following eight important factors that should be considered when determining sample size: ? The importance of decision. ? The nature of the research. ? The number variables. ? The nature of the analysis. ? Sample sizes used in similar studies. ? Incidents rates. ? Resource constraints. According to Malhotra (1999) the sample size should be guided by the availability of resources. In any marketing research project, money and time are limited. They are other constraints such as having the availability of qualified personal to assisting in the collection process. SELECTION OF THE SAMPLE According to Du Plooy (2001:104) sampling error relates to the degree of confidence that one can place one?s findings. Babbie (1983:415-416) states that it is recommended that one should aim for at least a 95% confidence level for any response. Assuming the population size is more than 500 000 radio listeners, a sample of 384 listeners would provide for a 95% confidence level and a 5% error tolerance. Babbie (2007:244) states that a survey is probably the best method available to social researcher who is interested in collecting original data for a population that is too large to observe directly. Flick (2009:123) states that sampling decisions always change between the aims of covering as wide a field as possible and of doing analyses which are as deep as possible. 233 Babbie (2007) further states that a careful probability sample provides a group of respondents whose characteristics may be taken to reflect those of the larger population. Du Plooy (2001:104) provides a useful table below which can be used to select a sample size that provides a 95% confidence level. Population size Sample size Infinity 384 500 000 384 100 000 383 50 000 381 10 000 370 5 000 357 3 000 341 2 000 322 1 000 278 Table 6: Simple random sample size at 95% confidence level. Source: Du Plooy (2001:104) PROCEDURES FOR DATA COLLECTION According to Clarke (1999:64) there are a variety of data collecting methods and research techniques are available. Du Plooy (2002:147) states that in addition to the using of questions, scales, self-administered questionnaires and interview schedules, researchers who intend to collect information by means of observations can use different instruments, or even design their own. Providing informed consent is obtained from the subjects; hardware (mechanical or electronic devices) can be used, such as audiotape recorders, videotape recorders, stopwatches, infrared photography, and one-way mirrors. Bertrand & Hughes in Naidoo (2008:117) states that surveys are systematic collection of data, which can then be used for: ? Collecting descriptive information (for instance, on the soap opera viewing habits of teenage girls). 234 ? Making comparisons between groups of people (for instance, comparing the soap opera viewing habits of teenage girls and teenage boys, or of teenage girls and house wives). ? Exploring relationships between variables (for instance, exploring the relationship between soap opera viewing and level of formal education). Bertrand & Hughes in Naidoo (2008) further states that in media and communication research on audiences, surveys might be done by: ? Document analysis. ? Questionnaires and forms (administered face-to-face, or by mail or phone). ? Interviews (structure, semi-structure or interviews). Treadwell (2011:136) states that analysing data from a small survey may be analysed by using a calculator, however for more complicated analyses one may enter data into data- processing software such as SPSS. In this study the computer programme SPSS 17 for Windows, was used to produce the statistics. COLLECTION OF DATA USING PERSONAL INTERVIEWS Clarke (1999:71) mentions that intervening is another research method that is used by evaluator. Dexter in Clarke (1999:72) states that the interview is like a conversation with purpose. Personal interviews which consisted of both structured and semi-structured questions were utilised as data collection method. Rampersad (2007:139) states that personal interviews can be a very effective means for gathering information the disadvantage is that it can also be very costly. Sharma in Rampersad (2007:140) state that the personal interview method enjoys potential advantages compared to mail surveys or telephone interviews, the following advantages are: ? It is most accurate. ? It generates the most amounts of data. ? It obtains the highest response rate. ? It is the most flexible method. ? It provides maximum control over sample respondents. ? There is an optimal questionnaire return rate. 235 With regards to the data collection technique used for the survey, no method can be taken as being the best, although personal interviews enjoy maximum advantage compared to others. Rampersad (2007:140) further states that the method selected, also depends on the research compared to others. It also depends on the research project undertaken, the geographic spread of the target population and the length of the questionnaire. Welman et al. (2005:164) state that the response rate is far greater since the interviewer physically confronts each respondent. There are instances that the respondent may be unwilling to complete the questionnaire. Questionnaires According to Clarke (1999:68) and Baxter & Babbie (2004:167) the questionnaire is a frequently used method for data collection in evaluation research. It can be used to provide the main source of data in a study. In the case of customer satisfaction surveys of service users or it can be a useful source of supplementary data, for an example, when collecting information from individuals participating in randomised control trails. Babbie (2007:245) states that sometime questions are asked by an interviewer; sometimes they are written down and given to respondents for completion. Welman et al. (2005:176) state that the literacy level of the intended respondents must be taken into account when compiling a questionnaire. Bertrand & Hughes (2005:69) state that questionnaires are an efficient way of reaching a large number of respondents at relatively low cost, and are often used in social research. Questionnaires were administered using the following methods: door-to-door and face-to- face distributing and through social networks. The questionnaire is a major tool in collecting primary data (Clarke, 1999). Fieldwork This survey was conducted by interviewing respondents at their homes, shopping malls and social gatherings. The researcher conducted all survey sessions. All 384 (100%) questionnaires that were handed out to respondents were completed and returned. The empirical investigation focuses on an evaluation of branded retailing on consumer behaviour within a public relations context that is based on South African name brands. The study has surveyed the extent to which consumers? behaviour is influenced by branded retailers. The findings in the literature review provide detailed information on the subject identifying how branded retailers effectively communicate to the consumers and influence their behaviour. 236 The researcher explained to the respondents the focus research and ensured them that this was totally a voluntary process and that they were not obligated to participate in any way. The researcher also ensured the respondents by emphasising that this survey was an anonymous survey and their responses would be confidential. The researcher further pointed out that respondents were required to place a tick or a cross, using a pen, in the relevant block in each question. Respondents were informed that certain questions required for them to write their explanations down. The researcher also informed the respondents that they should not in any way alter their response, as this would invalidate the response as a ?Spoilt Response?. The methods of data collection, sample frame, sample size, validity and reliability of the research study, is outlined together with the rationale of the questionnaire design, evaluation of results, analysis and data processing. The Rationale behind the Questionnaire The questionnaire was developed in conjunction with the study leader. Firstly, the researcher formulated the topic and the type of questions to be compiled. The researcher thereafter developed ranges of questions that focused on aspects of the influence of South African name brands have on consumer?s behaviour. The title of the questionnaire An Evaluation of Branded Retailing on Consumer Behaviour within a Public Relations Context. A study of the influence of South African name brands on consumer behaviour. The title aims to highlight the study on the evaluation of branded retailing on consumer behaviour within a public relations context. This study focuses on the influence of South African name brands on consumer behaviour, and how respondents perceive this. 237 The instruction and permission section The researcher assured the respondents in Section A and B that their personal data would remain private and confidential. The information provided would be used as proof that permission was granted by them to use their responses to contribute towards the research being conducted: ? I appreciate your willingness to assist in this research, however, please note that you are not compelled to partake in this survey. ? Your contributions to this questionnaire will remain private and confidential. No one will be able to trace your responses back to you as a person. ? Your permission to use these responses is required. This will form the first part of the questionnaire. ? This is a confidential survey and your name will not be linked to your responses. All personal information will remain confidential. The researcher reaffirmed his appreciation for their assistance for completing the questionnaire. Section A: deals with requesting permission from respondent to use their responses anonymously. Questions 1 to 6 Questions 1 to 6 have been designed to request respondents to provide their personal information. These questions also reports on the demographics of the respondents. The researchers have also made provision by the allocated space for the respondent?s signature. The request for their signature does not prejudice the respondent in any way, but serves to authenticate research. Questions 7 and 8 Gender was requested to ascertain what the percentage of the respondents belonged to each group. Question 8 dealt with respondent?s age group. This question assisted in correlating the opinions of the various ages on branding. Questions 9 & 10 Questions 9 and 10, are inter linked which focused on the respondent?s status of employment and length of employment. 238 Question 11 This question provided the information on the transactional activity of how respondents acquired their goods. Section B: focused on questions 12 to 34 which focused directly on the title of this research at hand. Respondents were able provide valuable and insightful information which was based on their experiences and opinions. Question 12 The responses attained provided a clear understanding whether or not respondents purchase products that are branded. Question 13 This question allowed respondents the freedom to list the various brands that added value to their life. Question 14 and 15 Question 14 acquired whether or not the respondent shopped at a specific branded retailer and question 15 provided information on the type of branded store which respondents frequented. Question 16 and 17 Questions 16 ascertained whether the branded retailer provided the customer service they promised. Question 17 enquired whether branded items were suitably priced. Question 18 and 19 Question 18 was designed to establish whether the branded retailer communicated to the respondent. Question 19 was only completed if respondent answered question 18 in the affirmative. This question dealt with the use of communication by the branded. Question 20 Question 20 speaks about the views that are held by the respondent regarding the advertisements placed by the branded retailer. There are four parts to this question which covers the areas such as captivating, deceptive, informative and attractiveness of the advertisements. 239 Question 21 and 22 Question 21 required the respondent to indicate the various categories of branded retailers they support. Respondents are asked comment in question 22 about the quality of the products they have purchased. Question 23 This question was designed to ascertain whether the branded retailer contributed towards community development. The respondent is required to indicate by selecting from the 6 categories of community development needs. Question 24 The following question dealt with customer satisfaction where respondents indicated by selecting from the eight categories. These responses indicated the underlying reasons why respondents are influenced to continue purchasing brand products and to support branded retailers. Question 25 and 26 The following two questions dealt with the branded retailer?s customer service department (CSD) and what type of responses the respondents received when they were contacted. Question 27 This question is designed to evaluate the perceptions that are held by respondents about the use of advertisements by branded retailers. Question 28 This question required respondents to indicate which of the following categories influenced their choosing a product from a branded retailer. Question 29 This question dealt with the emotional side of the respondent, how s/he felt wearing a branded product. 240 Question 30 and 31 These two questions dealt with the ?Proudly South African Brand?. Firstly respondents was requested to indicate whether s/he supported or did not and if s/he answered negatively then a response was required. Question 32 The use of wording in advertising plays an integral part for the branded retailer; respondents were required to indicate whether it provided adequate information for them to make a decision. Question 33 and 34 Both these questions required for the respondents to comment on how advertisers used the medium of television moulds children and parents behaviour. If respondents answered in the affirmative then they are requested for them to provide an explanation in question 34. PRE-TESTING According to Colorado State University (2010) it is impossible to design the perfect survey questionnaire. Although this may be the case, researchers can still create effective surveys. Colorado State University (2010) states that to determine the effectiveness of your survey questionnaire, it is necessary to pre-test it before actually using it. Pre-testing can help you determine the strengths and weaknesses of your survey. This helps in question format, wording and the sequencing of questions. Martin & Polivka in Malhotra (1999:315) states that testing a small sample of respondents will assist in identify and eliminate potential problems questionnaire. Even the best questionnaire can be improved by pre-testing. Rampersad (2007:148) states that all aspects of the questionnaire should be tested, including content of the question, wording, sequencing, form and layout. Testing of the questionnaire was conducted by engaging ten colleagues who volunteered to participate. They provided a constructive critique and this ensured the relevance for the questionnaire. 241 ANALYSIS OF DATA There are many statistical techniques and software programmes available. The researcher decided to utilise the following software programme: Statistical Package for Social Science (SPSS) version 17 for Windows to analyse the data in this study. Statistical Package for Social Science (SPSS 17) Once the researcher completed all the questionnaires, the researcher commenced with the encoding process. The researcher explained in detail the setting-up the encoding parameters in SPSS 17, entering the database, also, verification procedures and how to create tables. Although SPSS17 is capable to generate different types of graphs the researcher prefer to use Microsoft Office, Excel 2007 to generate the graphs. Setting up the Coding Parameters in SPSS When the SPSS 17 programme was launched, it immediately opened to the default page ?Data View?. Before the researcher used the ?Data view? to capture the actual data, the researcher had to select the ?Variable View? by moving the mouse to the bottom left hand of the screen and clicked onto ?Variable View?. The researcher entered abbreviations of his questions from lines 1 to 78 under the column header entitled ?Name?. Figure 29: Selecting of variable view 242 Next, under the column header entitled ?Type?, the researcher selected ?Numeric?. In the column ?width? he typed ?8? for all 384 rows. In the decimal column he typed in ?0? all the way down. In the column header ?Label? the researcher typed in the various labels as illustrated in figure 30. Figure 30: Assigning labels from questionnaire into SPSS Under the header ?Values?, the researcher proceeded to set up the coding parameters by entering the appropriate data code in the value slot. To illustrate this, he chose the Age as it is in figure 31. Initially the researcher typed 1 in the value slot and then inserted the various age groups. After which he clicked the ?Add? button to establish this coding parameter. The ?Add? button is used to add each age variable to the list of age variables. Once the variables were entered, he concluded by clicking on the ?OK? button. The researcher continued this process until all the questions from the questionnaire was completed. 243 The following snapshot illustrates the ?value labels? were different variables are set. Under the column header ?Measure? there are three options; Scale, Ordinal and Nominal. The ?Scale? measurement is relevant when respondents reveal their attitudes, preferences, opinions. It is measured on a gradually changing scale such as Not very important- Important-Very Important. ?Ordinal? measurement becomes relevant when respondents make value judgments (A is stronger than B or A is brighter than B). ?Nominal? measurements are relevant when respondents select a particular subcategory within an overall category such as age, gender and race. The questions that the researcher used will require him to use the ?Scale? and ?Nominal? measurements. Figure 32, illustrates how one goes about selecting the appropriate measurement. Figure 31: Assigning of variables into SPSS Figure 32: Assigning of measure in SPSS 244 THE VARIABLE VIEW This snapshot (figure 33), the variable view contain information coded to allow for data to be captured onto the programme. This information was coded according to each question in the questionnaire. DATA VIEW The researcher moved the mouse to the bottom left hand of the screen and clicked onto ?Data View? as illustrated in figure 34. Figure 33:The variable view of coded information Figure 34: The data view in SPSS 245 ENTERING THE DATA When entering the data one can use the numeric value or value labels. The numeric method is quicker, but there is room for errors, the researcher has chosen to use the value labels, although it is slow, there is very little room for errors. Both options are illustrated in figure 35. Figure 35: The numeric label and value label in SPSS The relevant code variant for the individual respondent is entered in the column that deals with each question. The first column represents the respondents, the researcher proceeded by numbering it from ?1? to ?384? all the way down ensuring that the 384 respondents are accounted for. VERIFYING THE ACCURACY OF THE CODING PROCESS After all procedures have been followed in terms of formulating the coding parameters and then the data is entered into SPSS. The researcher double clicked each code as it is show cased in figure 36, to verify the accuracy of this process according to the responses given by the respondents; he checked each variable by clicking on it. This indicates that the codes were captured correctly and the data was entered accordingly. Figure 36: Verifying the coding process 246 CORRELATION OF DATA In order to develop tables, graphic charts or any other chart that interpret results, the researcher had to first correlate the data. He commenced this process by first moving the mouse cursor to the ?Analyse? button and clicked on it, thereafter he scrolled to correlate where he selected the ?Bivariate? button as indicated in figure 37. The researcher then selected each variable and placed them under the ?Variables? section by clicking the arrow button. He thereafter selected ?Pearson? under the section labelled ?Correlations Coefficients,? next he selected ?Two-tailed? under the ?Test of Significance.? To conclude this process he clicked ?OK?. The correlation automatically formulated and placed the results into a table which is illustrated in figure 38. Figure 37: The procedure for correlating data in SPSS Figure 38: Selecting of variables in the correlating procedure 247 Figure 39 illustrates the correlation process. TABLES AND GRAPHS The researcher used the following steps to export tables and graphs from SPSS into Microsoft Word. 1. Go to Analysis, click on custom tables as shown in figure 40. Figure 39: Correlation table in SPSS Figure 40: The procedure for creating tables in SPSS 248 2. Figure 41 there searcher clicked on the variable ?Respondents Age?. This variable was used as an example to illustrate this procedure. Once the variable is selected, He thereafter clicked the ?Variable? and dragged it and inserted the ?Variable?. 3. The researcher clicked ?Summary Statistics? also indicated in figure 41. Figure 42 clearly demonstrates this thereafter he clicked ?Apply to Selection?. Figure 41: Selection of Variable in SPSS Figure 42: Selection of Summary Statistics in SPSS 249 4. Figure 43, the researcher clicked ?Categories and Totals? to insert ?Total? to be placed into table as illustrated in figure 44. 5. Table 7 illustrates what a completed table with the figures and table percentages. Figure 43: Selection of Categories and Totals in SPSS Figure 44: Selection of Categories and Totals in SPSS Count Table N % respondent age 20 to 30 years 126 32.8% 31 to 40 years 77 20.1% 41 to 50 years 76 19.8% 51 to 60 years 41 10.7% other 48 12.5% I do not want to answer this question 15 3.9% spoilt 1 .3% Total 384 100.0% Table 7: Sample table of SPSS 250 Although SPSS 17 can be utilised to generate graphs as well, the researcher decided to use Microsoft Excel 2007 to generate the graphs. The researcher proceeded with the following steps in order to generate graphs. 1. Firstly, the researcher copied the table by clicking the right button of the mouse and selected copy. He then proceeded to open Microsoft Excel 2007 and once the programme opened he pasted the table into the Excel spread sheet as illustrated in table 8. 2. He then proceeded by clicking the ?Insert Button? shown in figure 45 and thereafter he selected ?Pie Graph? as it is illustrated in figure 46. Table 8:The selection of the type of graph in SPSS Figure 45: Sample bar graph in SPSS Figure 46: Sample bar graph in SPSS 251 3. Finally, the researcher selected the type of pie graph he desired. He selected a 3-D Pie graph as illustrated in figure 47. CONCLUSION In this chapter, the researcher discussed the research procedures used and how he conducted the fieldwork for this study. The researcher thereafter explained the procedures about setting SPSS for processing the data. After obtaining the information from the respondents, he was able to capture the data. This programme, allowed the results to be successfully analysed. Chapter nine, the researcher presents the findings and the analysis of data for this study. Figure 47: Sample bar graph in SPSS 33% 20% 20% 11% 12% 4% 0% Respondents Age 20 to 30 years 31 to 40 years 41 to 50 years 51 to 60 years other I don't want to answer this question spoilt 252 C h a p t e r 9 ANALYSIS AND INTERPRETATION OF DATA INTRODUCTION The previous chapter the researcher discussed the various procedures that were used to conduct the research and how to setup the SPSS 17 programme to capture and analysis data. In this chapter the researcher will present the findings from the perspective of the respondents that participated in this research. The questionnaires were distributed across the country. The researcher selected only the responses which had significant results according to the ?Pearson? correlations, two-tailed test, provided graphs and tables with written explanations. GENDER OF RESPONDENTS Count Table N % Gender male 206 53.6% female 175 45.6% I do not want to answer 1 .3% spoilt 2 .5% Total 384 100.0% Table 9: Gender Out of the 384 respondents that were interviewed 53.6% (206) were male and 45.6% (175) were female. 253 RESPONDENTS AGE Figure 48 illustrates the various age categories of respondents that participated in this research of which 33% were between 20 to 30 years of age, the age of 31 to 40 and 41 to 50 years each recorded 20%. Ages 51 to 60 groups were 11% and other ages recorded were 12%. A total of 4% of respondents chose not to answer this question. Figure 48: Age of respondents 33% 20% 20% 11% 12% 4% 0% 20 to 30 years 31 to 40 years 41 to 50 years 51 to 60 years other I don't want to answer this question spoilt 254 RESPONDENT?S EMPLOYMENT STATUS A total number of 200 respondents in figure 49 have indicated ?Yes? to being employed and 163 respondents indicated ?No?; the remaining 21 respondents choose not to answer this question. Figure 49: Employment Status yes no I don't want to answer this question spoilt 200 163 21 0 255 EMPLOYMENT DURATION Figure 50: Employment duration In figure 50 the employment duration of respondents working in the category of (1 to 10 years) totals 44%; respondents between (11 to 20 years) were 19%. Categories 21 to 30 years scored 15%. The 31 to 40 years was 4%, similar to respondents who chose the category labelled other. A total of 12% of respondents decided not to answer. 1 to 10 years 44% 11 to 20 years 19% 21 to 30 years 15% 31 to 40 years 4% other 4% I don't want to answer this question 12% spoilt 2% 256 METHOD OF PURCHASING OF GOODS Figure 51: Methods of purchasing Respondents in figure 51 who use cash to purchase their goods were 54% and 4% indicated that they purchase only by credit. What is interesting to note is that 35% indicated that they use both methods. Respondents who choose not to answer this question totalled to 4%. 54% 4% 35% 4% 3% cash credit both I do not want to answer this question spoilt 257 A PARTICULAR BRANDED PRODUCT Figure 52: Purchasing branded products Figure 52 illustrates how respondents purchase specific branded products. Respondents totalling 55% have said ?Yes? to purchasing specific branded products. A total of 41% have indicated ?No? to purchase specific brands. The balance of 3% of respondents chose not to answer. 55% 41% 3% 1% yes no I don't want to answer this question spoilt 258 BRANDED PRODUCTS THAT ADD VALUE TO A CONSUMERS LIFE Respondents have mentioned that a number of brands add value to their life. Most of these products listed have a variety of other products under their label. Since there was many, the researcher in table 10 categorised the common ones: Clothing, Cosmetics, Dairy Products, Detergents, Electronics, Groceries, Meat & Chicken, Refreshments, Snack & Sweets, Toiletries and Jewellery. CATEGORY BRAND PRODUCT Clothing Billabong, barker shoes, Gucci, Levis, Nike, Puma, Adidas, Quick Sliver, Reebok, Toughees, Grasshopper, Kelso, Oakridge, Pringle, Lacoste, Lee and Soviet. Cosmetics Placecol, Bobbi Brown, ModelCo, Filorga, Almay, Coty, Dark & Lovely, Estee Lauder, Loreal, Revlon, Yardley, Aramis, Clinique, Dunhil, Usher, Hugo Boss, Tommy, Justine and Guess. Dairy Products Clover products, Dairy Bell products, Danone yoyguts, Floria products, Paramalt products and Stock products. Detergents JIK, Vanish, OMO, Skip, Toilet Duck, Sunlight products and Domestors products. Electronics Samsung, Nokia, Sony Ericsson, Toshiba, Panasonic, pioneer, Defy, KIC Groceries Tastic Rice, Aunt Caroline, KOO Bake Bean, All Joy, Fatti?s & Monis products, Kelloggs, Hullets sugar products, Lucky Star and Pilchards. Meat & Chicken Rainbow, Farmer Brown, Escort sausages and Enterprise. Refreshments Coke, Glen Tea, Five Roses, Bonaqua, Fanta, Lemon twist, Pepsi, Fresh Pack, Jacobs Coffee, Frisco coffee, Ricoffy, Nescafe, Tropika and Wild Island Juice. Snacks & sweets Easter eggs, Cadbury products, Beacon sweets, Lays, Simba, and salty cracks. Toiletries Colgate tooth Paster, Colgate Hair products, Head & Shoulders LUX, Dove, Pantene, Savlon and Aquafresh. Jewellery Fossel, SeIko, Tempo, Michel Herbelin and Omega Watch. Table 10: Branded products 259 SHOPPING AT A SPECIFIC BRANDED RETAILER Figure 53: Shopping at specific branded retailers Figure 53 reflects 64% of respondents prefer shopping at a specific branded retailer. Those that shop without preference totalled to 26%. Respondents who chose not to answer were 10%. 64% 26% 10% 0% yes no I don't want to answer this question spoilt 260 FREQUENTLY VISITED BRANDED STORES The most popular branded retailers revealed by respondents are listed in the following categories: Supermarket, Restaurants, Clothing store, Service providers, Jewellery store, and All-purpose store. These are listed in the table 11. CATEGORY BRAND RETAILERS Supermarket Checkers, Pick N Pay, SPAR, Checkers Hyper, Kloppers, Shoprite, Take and Pay, Check Out, Fruit and Veg, House Wives Market, Boxer, Browns and OK. Restaurants Kentucky Fried Chicken (KFC), Nandos, Mugg & Bean, Ocean Basket, Mc Donalds, Debonairs and Steers. Clothing Store Sport Scene, Truworths, Girl Zone, Mr Price, Identity, Stuttafords, Woolworths, Edgars, Foschini, Foschini, Just men, Miladys? Hub, American Men's Wear, Boardmans, Red Square, Jet, Asmals, Brands Unlimited, Total Sports, Timberland, Clicks, Jet, Just Men and Markham. Service Providers Telkom, Cell C, Vodacom, MTN, Panasonic, Sanlam, Old Mutal, Hollard, Client Tel, OUTsurance, Budget, Standard Bank, Nedbank, ABSA, FNB, M Web and Multi Choice. Jewellery Store Sterns, American Swiss and Hyper Jewellers. General Stores HI FI Corporation, House & Home, Incredible Connections, Game, Makro and Trade Centre. Table 11: Frequently visited branded stores 261 SERVICE DELIVERY Figure 54: Service Delivery Figure 54 graphically provides the findings to the question of service delivery. A 73% of respondents indicated ?Yes? while 18% have indicated ?No? and 7.4% decided ?not to answer?. BRANDED PRODUCTS SUITABLY PRICED Respondents provided various responses and the most outstanding one was the price factor. Respondents have indicated that branded products are highly priced and often cause stress to their budget. Respondents also mentioned that the high costs for branded clothing could be contributed to the quality of materials and the fashion detail by renowned designers. Branded products such cosmetics and food items are often overpriced due to the packaging, marketing and advertising processes. Many of them stated that payment should be for the product and not for the name. Branded retailers also stock ?house brands? or ?no name? brands. Although these labels are not main line brands they are often cheaper and at times can be highly priced since they are popular brands. yes no I don't want to answer this question spoilt 73.0% 18.0% 7.4% 1.6% 262 This is common among food items. It is also important to note that ?house? or ?no name? brands are brands that belong to a specific brand retailer. Some of the respondents normally indulge in brand items when they are on sale. Respondents also mentioned that manufacturing costs, levies, vat, and labour cost and ensure quality for customer satisfaction are the main reasons for branded products to be highly priced. However it is observed that respondents are divided about this question. FORMS COMMUNICATION What forms of communication provide you with this information? Newspaper 262 Radio 193 Television 269 Promotional events 140 Bill boards 143 Newsletters 118 Brochures 160 Magazines 201 Emails 74 Websites 53 Other 40 I do not want to answer this question 20 Table 12: Forms of Communication Respondents indicated that brand retailers use the following forms of communication: Print media categories totalled 262 chose newspapers, 143 for bill boards, 118 for newsletters, 160 for brochures and a further 201 for magazines. Under the electronic media category 193 selected radio, 269 selected television, 74 chose emails and 53 chose websites. 140 respondents selected the promotional events category. The category ?Other? 40 respondents chose this and 20 respondents opted not answer this question. 263 BRANDED RETAILER?S ADVERTISEMENTS What are your views about branded retailers? advertisements? Yes No Not Sure Advertisements are captivating 231 24 37 Advertisements tend to be very deceptive 174 59 46 The advertisements are very Informative 178 55 47 The advertisements are attractive 261 17 23 Table 13: Branded Retailer?s Advertisements Respondents were asked to indicate their views on four categories of advertisements that are used by branded retailer. The first category deals with captivating advertisements: 231 said ?Yes?, 24 indicated ?No? and 37 respondents were ?Not Sure?. The second category focused on deceptive advertisements: 174 selected ?Yes?, 59 selected ?No? and 46 were ?Not Sure?. The third category dealt with whether advertisements are informative: 178 selected ?Yes? and 55 selected ?No?. 47 selected ?Not Sure?. In the fourth category attractiveness advertisement: 261 selected ?Yes?, 17 selected ?No? and 23 selected ?Not Sure?. 264 BRANDED RETAILERS SUPPORTED What type of branded retailers do you support? Yes No Not Sure Supermarket 311 19 3 Clothing store 287 21 2 Jewellery store 115 89 17 Cosmetics Store 143 80 6 Restaurant 220 32 8 Other 75 11 20 Table 14: Type of Branded Retailers Supported From the six categories of brand retailers, respondents supports the following: ?supermarket? category totalled 311 for ?Yes?, 19 selected ?No? and 3 selected ?Not sure?. For the ?clothing store? category 287 selected ?Yes?, 21 selected ?No? and 2 selected ?Not Sure?. The category for ?jewellery store? 115 chose ?Yes?, while 89 selected ?No? and 17 said ?Not Sure?. In the ?Cosmetics store? category 143 selected ?Yes?, 80 selected ?No? and 6 were ?Not Sure?. The ?restaurants? category 220 selected ?Yes?, 32 selected ?No? and 8 were ?Not Sure?. Respondents also chose the category ?other? for which 75 selected ?Yes?, 11 selected ?No? and 20 were ?Not Sure? about this category. 265 COMMUNITY DEVELOPMENT Do branded retailers contribute towards community development? Yes No Not Sure Skills development for the unemployment 123 92 94 Educational development 122 72 94 HIV/AIDS awareness programmes 133 62 94 Drug awareness programmes 87 94 105 Crime prevention 87 95 106 Support Charity organisations 206 41 67 Table 15: Community Development Table 15 illustrates the involvement of branded retailers in the various areas of community development. In the category for skills development for the unemployed, 123 said ?Yes?, 92 said ?No? and 94 indicated that they were ?Not Sure?. In the educational development category 122 indicated ?Yes?, 72 said ?No? and 94 replied ?Not Sure?. For the category HIV/Aids awareness programmes, 133 choose ?Yes?, 62 said ?No? and 94 indicated that they were ?Not Sure?. Crime prevention responses were as follows: 87 selected ?Yes?, 95 selected ?No? and 105 respondents said that they ?Not Sure?. Branded retailers support for charity organisations received 206 ?Yes? responses, 41 saying ?No? and 67 remain ?not Sure?. 266 CUSTOMER SATISFACTION In which areas do branded retailers provide you with customer satisfaction? Yes No Not Sure Good quality 288 15 21 Friendly Service 234 35 32 A good pricing 135 96 45 Provides individuality for you 143 87 34 Adds status to you 141 83 38 Provides a wide range of products 211 37 29 Has a good floor layout 201 32 42 Provides good signage for products 153 36 68 Table 16: Customer Satisfaction The table 16 is a matrix clearly indicating the various responses of respondents concerning their thoughts on the eight categories that deals with customer satisfaction. 267 ADVERTISEMENTS USAGE What do you think when ?branded retailers? use advertisements? Improve their profits 266 Improve their image/ brand 229 To create and promote an elite society 112 To inform you on sale items 221 To influence you to visit the store 243 Increase their customer base 235 Provide their customers with good prices 122 Other 46 Table 17: Advertising Usage Table 17, the usage of advertisements as revealed the following: a total number of 266 respondents stated that branded retailers use advertisements to improve their profits, 229 selected brand image and 112 selected the category ?to creating and promoting an elite society?. A total of 221 respondents said that advertisements provide them with information about sale items. Respondents totalling to 243 said that advertisements influence them to visit the brand retailer?s store. With regards to increasing the customer base, 235 thought so. Only 122 said that advertisements are used to provide customers with good prices. A total 46 respondents also selected ?other? indicating that advertisements maybe used for other reasons. 268 PRODUCT INFLUENCE What influences you to choose a product? Colour 180 Packaging size 143 Brand name 210 Shelf life 157 Fashion 178 Cost 240 Recommendation 108 Experience 144 Quality 276 Other 32 I do not want to answer this question 23 Table 18: Product influence Table 18 illustrates how respondents feel about product influence. A total of 180 respondents selected ?colour?, 143 chose packaging size, 210 said ?brand name?, 157 said ?shelf life?, 178 chose ?fashion?. In the ?cost? category 240 select this and 108 said they were recommended. Experience category scored 144. The ?quality? category totalled the highest, with a score of 276 responses, and 32 respondents selected the ?other? category while 23 chose not to answer. 269 BRANDED PRODUCTS How do you feel when use or wear a brand name product? I feel good 205 I feel rich 76 I feel accepted 99 I feel normal 126 I feel comfortable 240 I feel no effect 69 Other 25 I do not want to answer this question 38 Table 19: Branded Products Respondents expressed their feeling of wearing branded name products by selecting the various categories. A total of 240 stated that they feel comfortable wearing branded products. Also 205 said it makes them ?feel good? when they wear these products. A total of 126 said that they ?feel normal? when they wear such products and 99 respondents stated that they ?feel accepted?. Respondents to the total of 76 said that they ?feel rich? when they wear such products, 69 stated that they ?feel no effect? at all. In the ?other? category 25 selected this and 38 chose not to answer this question. 270 CUSTOMER SERVICE Figure 55: Customer Service Customer Service is an important aspect for branded retailers and figure 55 illustrates the following: 36.4% (134) respondents said ?Yes?, while 54.1% (200) said ?No? and 9% (33) respondents chose not to answer this question. 134 199 33 2 36.4% 54.1% 9.0% .5% yes no i don't want to answer spoilt Customer Service 271 RESPONSE TO CUSTOMER QUERIES Figure 56: Customer Queries Figure 56 illustrates respondents? satisfaction to their queries by brand retailers: 49% of respondents say it is ?outstanding?, 35% said ?satisfactory? and 13% indicated that it was ?poor?. outstanding 49% satisfactory 35% poor 13% spoilt 3% Response to queries 272 PROUDLY SOUTH AFRICAN BRANDS Figure 57: Proudly South Africa brands With regards to the respondents? supporting the Proudly South African brand products, 75% said ?Yes?, 12% said ?No? and a further 12% chose not answer this question. REASONS FOR NOT SELECTING A PROUDLY SOUTH AFRICAN BRAND The reasons respondents provided for not supporting the Proudly South African Brand varied, some feel it does not increases job opportunities and assist the unemployed in South Africa. Some have stated that the products that carry this brand are more expensive than international brands. The general feeling is that the products are manufactured outside the country which does not add value to the people of South Africa. Respondents have also stated that many branded retailers import products from the east and re-label it as Proudly South African and they regard this as misleading and deceptive. 75% 12% 12% 1% Proudly South African branded products yes no I don't want to answer spoilt response 273 WORDING IN ADVERTISING Figure 58: Wording in Advertising The role of wording in branded retailers? advertisement secured 52.6% respondents saying ?Yes?, while 29.6% chose ?No? and a further 17.3% did not answer this question. yes no I don't want to answe spoilt response 52.4% 29.7% 17.3% .5% The role of wording 274 MEDIA?S INFLUENCE ON CHILDREN?S AND PARENTAL BEHAVIOUR Figure 59: Media?s Influence children?s parental behaviour When respondents were asked to comment on the media?s influence the following was deduced, 44,1% (162) said ?Yes?, 27.8% (102) said ?No? and 27.0% (100) did not answer this question. Media influencing the moulding of children and parental behaviour According to figure 59, 44.1% of respondents stated ?Yes? to media influence. Respondents have stated that media influence is both positive and negative. Respondents noted that although advertisements pay for programming so that a good variety can be provided, they also become annoying at times. They stated that the messages that are placed into advertisements tend to be persuasive and leads them to purchasing items that they need but they do so because of want, which feeds their greed. Overspending can lead to family conflicts since demands can be increased and budgets cannot be maintained. Some of them purchase products out of curiosity. Branded retailers place various types of advertisements such as alcoholic beverages which are appealing, enticing and also influence youth to experiment. 162 102 99 4 44.1% 27.8% 27.0% 1.1% yes no I don't want to answer spoilt response Media Influence 275 Advertisements tend to influence children easily and cause them to becoming very demanding and manipulative towards their parents. Cartoons are also used as a marketing tool to promote sales. Children spend many hours in front of the television, which influences them to dress, speak and behave in a certain way. These demands made by children can place major demands on parents. Celebrities are also used very strategically to market the brands and this has a huge influence on all age groups. Media at times can be controlling, deceptive and distracts children from their normal development. Children are very impressionable and the media greatly influences their behaviour. Media must reconsider their responsibility. The use of media by the brand retailer must be done responsibly providing the consumer with appropriate information about the various brand products. CONCLUSION This chapter highlighted the various responses that were received from the research conducted. Results were presented graphically and with detailed explanations for the open ended questions. This research provided the respondents? views of the branded retailers? ability to influence their behaviour. The final chapter provides conclusions and recommendations for this research study. 276 C h a p t e r 1 0 CONCLUSIONS AND RECOMMENDATIONS INTRODUCTION The previous chapter provided the analysis of the research conducted. In this final chapter the conclusions and recommendations are presented in regards to the study conducted on the evaluation of branded retailers on consumer behaviour from a public relations context. Branded retailing in South Africa is indeed evolved and it has embraced new methods to advance business operations. The way branded retailer communicates with their consumers has also evolved. The ability to persuade and influence consumers to purchase their products is becoming more sophisticated. Branded retailers use advance technological strategies for their marketing and advertising. The engagement of social media has introduced a new market for segmentation. Brands are purchased daily and in order for a branded retailer?s brand to maintain its momentum and continue to generate sales, they have to ensure that they use all current forms of communication. CONCLUSIONS Branded retailers have been successfully using traditional methods of communication for marketing and advertising. These methods have contributed towards the advancing their business for decades. Mass communication such print media, radio, television were used with embracing digital communication such as the Internet (websites & emails). New media applications being developed provides a new way to effectively communicate in the areas of marketing and advertising. Branded retailers use communication to engage and foster effective relationships with their customers. According to Jordaan & Jordaan (2004:146) effective customer relations will require businesses to communicate in a manner that will make their customers feel protected. This includes the development of privacy protection policies and the avoidance of inappropriate sharing of customer information to anyone or any other business. Goodman in Scriven (2002:30) explains that communication today has 277 become more strategic while better relationships with the community have also become a priority to many organisations. The consumer must also benefit from branded retailers; they need to enjoy the quality of the brand, prompt service and value for money. The consumer must be made to feel that they are special. This assists the branded retailer to retain their customers. The branded retailer must ensure that this is practiced at all times since the customer is the life blood of the business. According to Davis & Dunn (2002:184) building a brand-driven business requires your company to take a comprehensive view of the post-purchase experience and develop a coordinated effort to drive customer satisfaction, customer retention, and customer loyalty (Davis & Dunn, 2002). Branded retailers are beginning to engage more extensively the use of social media. Advertising their products social media sites allows them to enter a newer market. The virtual community has now become a new market segment. Respondents have indicated that they have noticed that branded retailers are making a presence in various social media sites. Branded retailers are placing advertisements and also creating events and causes which encourage potential consumers to join. The provision of valuable information such health related issues, safety matters, important facts and many other helpful hints or do-it-yourself applications are provided to stimulate interest. According to Chen (2005:107) virtual information space consists of new Internet-Based channels through which economic agents can display information about themselves. Chen (2005) further states that the products and services they offer included on their sites providing information. As new communication continues to advance and converge with traditional ones. It is vital that the branded retailer ensures that consumers are protected especially when engaging with them in the cyber/ virtual or e-commerce platforms. Personal data is important and consumer?s information must be safe guarded at all times. It is quite clear that many consumers become apprehensive when it comes to their privacy. With e-commerce, consumers? information is required so that in economic activities offered by the branded retailers can be enjoyed. The branded retailer must develop protection policies and effectively communicate these to their customers. By doing this it will strengthen consumer confidence. 278 The use of public relations initiatives in conjunction with marketing and advertising provides the branded retailer the cutting edge to advance its brands in some difficult times. Public relations is able to provide solutions in devise situations such as financial meltdowns or brand crisis and product recalls, public relations is able to diplomatically provide the skills to sustain the brand and the branded retailer. According to Verwey (2000:52) today?s highly competitive business environment, public relations has the opportunity to become one of the key management disciplines of the future. Verwey (2000) further states that public relations professionals will increasingly be called upon to interpret external developments and formulate plans to address a broad range of issues. As a result, public relations professionals must understand the major issues and trends confronting business and society, and be able to communicate their long term implications to management effectively. The key issues that will remain of concern include many challenges that are a function of technology and changing times (Verwey, 2000). Community work that is conducted branded retailers is commendable. Branded retailers that engage in such community projects do so with the intent to provide opportunities to residents. Although this may be seen as way to increase brand awareness the impact of community development is important. Branded retailers engage in diverse methods of Corporate Social Investment initiatives such as employee volunteerism sharing human capital expertise. According to Tustin & Pienaar (2005:125) some companies tend to extend their relationship to an organisation or cause beyond marketing by integrating it with the activities of the other company in community involvement, employee volunteerism or corporate philanthropy. Miles & Mangold (2005:536) state that the employee branding process enables the organisation to consistently deliver its desired brand image to customers, thereby solidifying a clear position in the minds of customers and employees alike. If this is correctly initiated, it will provide a competitive advantage through its employees. Employee branding is also developed when employees internalised the desired brand image and are motivated to project that image to customers and other organisational constituents. 279 Branded retailers must assist in the development process of indigenous brands that exist within rural communities. This engagement will assist in the establishment and provide sustainability to these communities. Many of these communities have relied on agriculture and this has somewhat eroded due to environmental challengers, financial difficulties and migration to urban areas of the country to seek employment. There are many offerings that the rural communities have and branded retailers must invest in them so that they are able sustain their indigenous brand of products such as medicinal remedies, cultural life styles. This also contributes to a tourist brand which draws visitors from within the country and from abroad. The sharing of marketing skills from branded retailers can greatly establish these communities. The branded retailer also scores when tourists visit the country. According to Cai (2002:720) brands are found in various categories of tourism, goods and services and permeate almost all facets of tourist activities. Cai (2002) states that the concept is not studied and practiced as vigorously in destination marketing. Malli (2009) states that generating positive word-of- mouth, particularly from local sources of authority, is as critical as mass media advertising. Malli (2009) continues to state that it is therefore important for marketers to understand rural hierarchies and tap into local opinion leaders to help brand adoption and diffusion within a rural community. This strategy if adopted will prove to be beneficial for both the rural community and urban manufacturer. Branded retailers must also use advertising and marketing responsibly their information clearly. According to Seeco (2007) advertising and marketing have a major role to play in creating a new way to communicate with their publics. Seeco (2007) further states that in South Africa, developing a popular advertising edifice, bearing images and expressions that reflect a national ethos and collective nuances must embrace the riches of the collective culture nationally, history and language. In order for this to happen, the industry has to develop a new way of seeing its audience. The industry has to recognise the unique background of the people it wishes to address. From that, a seamless channel of communication will flow (Seeco, 2007). 280 RECOMMENDATIONS 1. Branded retailers must ensure that they market their products by providing adequate and responsible information which will assist the consumer in her/his decision making process. 2. It is important for branded retailers to understand the consumer?s behaviour. 60% of the respondents in this research indicated that they prefer to shop at a specific retailer. Branded retailers should understand that consumers are loyal. In order for the branded retailers to maintain customer loyalty they must also in turn be loyal to their consumers. 3. Brands are often very expensive and consumers often consider this to be hyped and feel that they are taken advantage of. Branded retailers must ensure that their pricing is correct and based on quality and not on demand. Brands must live up to their promise and ensure that customers get value for money. 4. The information printed on the product labels are often in small print and the language used is often technical or scientific jargon. Proper orientation and information must be presented with simple language. Product orientation is important for consumer confidence. 5. Brands must be responsible to maintain their image but not on the expense of the consumer. Brands must provide the consumer with a peace of mind that the products they purchase are environmentally friendly. Branded retailers must visibly demonstrate that they are socially responsible. 6. Branded retailers must ensure that they provide the consumer with confidence and contribute to their well-being and social development. 7. Branded retailers must maintain and also engage new communication methods for advertising and marketing. It will be advisable to make more use of traditional media outlets and gradually increase new communication. 8. Branded retailers must take note of the way in which they communicate with their consumers. Often their approach is seen as impersonal, making the consumer feel that 281 they are regarded to be just a number. A relational marketing approach will serve the branded retailer well. Store managers and other senior staff members must at intervals leave their offices and connect with consumers on the store floor. 9. Customer service should be high on the agenda. Courtesy calls to consumers should be used to ensure product satisfaction and also serve as a relationship building exercise. 10. Branded retailers must make an earnest effort to engage the local community in where it conducts its business. Providing CSI outreach programmes will address the social ills of the community. 11. 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[Online] Available at: http://www.yum.com/company/pressreleases/030609.asp [Accessed on 9 August 2010. 13:02 pm CAT]. 306 ADDENDA 307 ADDENDUM 1: Questionnaire 308 For office use only: Respondent Number: ______ Voluntary questionnaire for the Consumers An Evaluation of Branded Retailing on Consumer Behaviour within a Public Relations Context. A study of the influence of South African name brands on consumer behaviour. University of Zululand Department of Communication Science Researcher: Gedala Mulliah Naidoo (Student Number: 20034985) Supervisors: Professor H. Rugbeer Dr. Y. Rugbeer NOTE TO THE RESPONDENT ? I appreciate your willingness to assist in this research, however, please note that you are not compelled to partake in this survey. ? Your contributions to this questionnaire will remain private and confidential. No one will be able to trace your responses back to you as a person. ? Your permission to use these responses is required. This will form the first part of the questionnaire. ? This is a confidential survey and your name will not be linked to your responses. All personal information will remain confidential. The questionnaire as two parts: Section A requests for permission to use your responses for academic research. Section B requests that you indicate how branded retailers in South Africa influence you as a consumer. How to complete the questionnaire 1. Your opinion is required. It does not matter what other people think. I am solely interested in your opinion. Tell me how you feel. Your responses are important to me. 2. Read each question carefully and take a moment to ponder your answer. 3. Please use a pen to mark your responses by placing a tick (?) or a cross (X), in the appropriate column, or by writing down the appropriate information, where ever required. 4. Please do not change any of your responses afterwards (for instance: do not scratch out or tippex any of your responses). Thank you for your participation. Contact Details: Gedala M Naidoo POBOX 56689, Chatsworth, 4030 Tel: +27-84 6025 636 Email: kevinaidoo@gmail.com 309 SECTION A Please provide the following confidential information to indicate that you are granting me permission to use your responses in my research. Your personal identity will NOT be revealed when the survey results are published in my thesis. 1. Your initials and surname 2. Your home address Suburb Postal code 3. Your signature 4. Your telephone OR cell phone number 5. Fax No. 6. Email 8. Your age 7. Your gender Male 1 Female 2 I do not want to answer this question 3 20 to 30 years 1 31 to 40 years 2 41 to 50 years 3 51 to 60 years 4 Other 5 I do not want to answer this question 6 9. Are you currently employed? Yes 1 No 2 I do not want to answer this question 3 10. If Yes, how long have you been employed? 1 to10 years 1 11 to 20 years 2 21 to 30 years 3 31 to 40 years 4 Other 5 I do not want to answer this question 6 310 SECTION B Brand is an item that is popular in the market place for example Ricoffy, Colgate, Coke and Nike these regarded as brands and usually attract the consumer (Like you). A branded retailer is a chain store or a franchise where one shops at for example: Checkers Supermarkets, Edgar?s, Woolworths, Kentucky Fried Chicken (KFC). Please insert a tick (?) or a cross (X) on the box that corresponds to your response. 12. Do you purchase products that are branded? 13. Which particular branded product(s) adds value to your life? Please list your answer below. __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 14. Do you shop at specific branded retailer? 15. Which particular branded store do you most frequently visited? Please list your answer below. ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________________________________________________________________________ 16. Do branded retailers provide the service they promise? 11. How do you purchase your goods? Cash 1 Credit 2 Both 3 I do not want to answer this question 4 Yes 1 No 2 I do not want to answer this question 3 Yes 1 No 2 I do not want to answer this question 3 Yes 1 No 2 I do not want to answer this question 3 311 17. Do you believe that branded items are suitably priced, please explain? __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ 18. Does the branded retailer provide you with proper communication concerning their current activities, (such as sales, promotions, competitions)? Yes 1 No 2 I do not want to answer this question 3 19. If the answer is yes to question 18, what forms of communication provide you with this information? You can tick as many as you want too.(?) 19.1 Newspaper 19.2 Radio 19.3 Television 19.4 Promotional events 19.5 Bill boards 19.6 Newsletters 19.7 Brochures 19.8 Magazines 19.9 Emails 19.10 Websites 19.11 Other 19.12 I do not want to answer this question 312 20 What are your views about branded retailers? advertisements? Please insert a tick (?) or a cross (X) on the box that corresponds to your response. Yes No Not Sure 20.1 Advertisements are captivating 20.2 Advertisements tend to be very deceptive 20.3 The advertisements are very Informative 20.4 The advertisements are attractive 21. What type of branded retailers do you support: Please indicate with a tick (?) or a cross (X). Branded Retailer Yes No Not Sure 21.1 Supermarket 21.2 Clothing store 21.3 Jewellery store 21.4 Cosmetics 21.5 Restaurant 21.6 Other 22. Do you think that branded retailers provide a better and wider range and quality of products? Yes 1 No 2 I do not want to answer this question 3 313 23. Do branded retailers contribute towards community development? Please insert a tick (?) or a cross (X) on the box that corresponds to your response. Yes No Not Sure 23.1 Skills development for the unemployment 23.2 Educational development 23.3 HIV/AIDS awareness programmes 23.4 Drug awareness programmes 23.5 Crime prevention 23.6 Support Charity organisations 24. In which areas do branded retailers provide you with customer satisfaction? Please insert a tick (?) or a cross (X) on the box that corresponds to your response. Yes No Not Sure 24.1 Good quality 24.2 Friendly Service 24.3 A good pricing 24.4 Provides individuality for you 24.5 Adds status to you 24.6 Provides a wide range of products 24.7 Has a good floor layout 24.8 Provides good signage for products 25. Did you contact the customer service department of a branded retailer? 26. If yes, how would you rate their response to your queries? Please tick one. (?) Outstanding 1 Satisfactory 2 Poor 3 Yes 1 No 2 I do not want to answer this question 3 314 27. What do you think when ?branded retailers? use advertisements: Please insert a tick (?) or a cross (X) on the box that corresponds to your response. You may choose more than one! 27.1 Improve their profits 27.2 Improve their image/ brand 27.3 To create and promote an elite society 27.4 To inform you on sale items 27.5 To influence you to visit the store 27.6 Increase their customer base 27.7 Provide their customers with good prices 27.8 Other 28. What influences you to choose a product? Please select your choice from the table below. Please insert a tick (?) or a cross (X) on the box that corresponds to your response. You may choose more than one! 28.1 Colour 28.2 Packaging size 28.3 Brand name 28.4 Shelf life 28.5 Fashion 28.6 Cost 28.7 Recommendation 28.8 Experience 28.9 Quality 28.10 Other 28.11 I do not want to answer this question 315 29. How do you feel when use or wear a brand name product? Please insert a tick (?) or a cross (X) on the box that corresponds to your response. You may choose more than one! 29.1 I feel good 29.2 I feel rich 29.3 I feel accepted 29.4 I feel normal 29.5 I feel comfortable 29.6 I feel no effect 29.7 Other 29.8 I do not want to answer this question 30. Do support the Proudly South African brand? 31. If your answer is no, please explain why not? 32. Do you think that the wording used by advertisers for their products provides adequate information for you to make a choice? 33. Advertisers use the television and other forms of media that influence the moulding of children?s and parental behaviour? Do you agree? 34. If yes, briefly explain your views. Thank you for completing this questionnaire. Yes 1 No 2 I do not want to answer this question 3 Yes 1 No 2 I do not want to answer this question 3 Yes 1 No 2 I do not want to answer this question 3 316 ADDENDUM 2: Sample Letter to a Branded Retailer 317 Dear Sir REQUEST FOR INFORMATION ON THE PEP BRAND As a senior representative of a major branded retailer in South Africa I would appreciate if you could assist me with information concerning the PEP brand. The company?s annual reports and CSI initiatives and any other information will be welcomed. This will serve as reference information in my studies towards a Doctoral Degree in the Faculty of Arts, Department of Communication Science at the University of Zululand. The title of my thesis is: AN EVALUATION OF BRANDED RETAILING ON CONSUMER BEHAVIOUR WITHIN A PUBLIC RELATIONS CONTEXT The objective of the study is to investigate and examine how branded retailers influences consumer behaviour. I confirm that I am a registered student with the University of Zululand, student 20034985.The information furnished by you will make an important contribution to the success of my study. Your co-operation in this study will be appreciated. Yours sincerely ___________________ Gedala Mulliah Naidoo ? Clive Munsamy Regional Manager PEP PO BOX 51277 Musgrave 4062 Phone: +27-83-220 9123 +27-83-313 4999 Email: am060@pepstores.com Kevin Naidoo University of Zululand Internal Box 605 Private Bag X1001 KwaDlangezwa Phone: +27-35-9026164 Fax: +27-86-6517133 Email: kevinaidoo@gmail.com 318 INDEX A Absa, 8, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166 ABSA, 145, 157, 158, 159, 176, 191, 260, 282, 292 absa foundation, 158, 159, 163 Absa Foundation, 158, 159, 163 absa group, 158, 160 Accelerated, 8, 166 Acquired Immune Deficiency, 8 acquired immune deficiency syndrome, 8, 154, 159, 160, 162, 163, 164, 165 Acquired Immune Deficiency Syndrome, 8, 163 Adidas, 30, 98, 258 advertisement, 108, 117, 138, 139, 141, 195, 263, 273 advertisements, 56, 80, 108, 110, 127, 139, 140, 220, 238, 239, 263, 267, 274, 312, 314 Advertisements, 117, 141, 220, 263, 275, 312 advertisers, 120, 132, 135, 144, 240, 315 Advertisers, 315 adverts, 131, 140, 220 Afrocentricity, 28 anonymous survey, 236 Approximately what percentage of first year students have attended, 99, 189, 212, 214, 282, 285 artificial, 43 Artificial, 8, 215 Artificial Intelligence, 8, 215 association, 78, 79, 156, 173 Association, 8, 9, 99, 107, 162, 283 associations, 41, 47, 76, 78, 81, 92, 173, 226 Associations, 78 attitudes, 37 Authentication, 9, 99 Automobile Association, 8, 129, 283 B beliefs, 37 blog, 28, 46, 131 Blog, 28, 197, 284 Blogger, 119, 298 blogs, 42, 49, 87, 121, 123, 124, 130, 131, 206, 213 Blogs, 28 brand, 21, 22, 24, 27, 29, 30, 31, 32, 35, 38, 39, 41, 46, 47, 49, 51, 52, 55, 56, 61, 65, 68, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 101, 102, 103, 104, 106, 107, 108, 111, 112, 113, 114,115, 116, 119, 120, 121, 124, 127, 128, 130, 131, 132, 133, 135, 136, 137, 138, 139, 140, 141, 142, 147, 148, 151, 152, 156, 157, 158, 166, 167, 168, 169, 170, 171, 172, 178, 179, 180, 181, 183, 185, 186, 188, 189, 190, 192, 194, 195, 200, 210, 215, 216, 217, 219, 223, 224, 226, 227, 228, 239, 267, 269, 272, 276, 278, 314, 315 brands, i, 21, 22, 24, 27, 28, 29, 31, 32, 39, 41, 46, 47, 52, 55, 65, 67, 68, 69, 73, 75, 76, 77, 78, 79, 80, 81, 82, 83, 85, 86, 87, 88, 90, 91, 92, 93, 94, 96, 97, 98, 99, 100, 101, 102, 103, 104, 113, 114, 115, 121, 122, 123, 130, 132, 139, 140, 142, 143, 145, 148, 149, 150, 151, 167, 174, 180, 183, 185, 186, 190, 191, 197, 210, 211, 215, 221, 223, 235, 236, 238, 257, 261, 262, 272, 275, 278, 288, 290, 291, 295, 301, 303, 308, 310 Brands, 10, 21, 29, 71, 75, 76, 79, 88, 97, 99, 101, 102, 103, 115, 139, 148, 160, 171, 180, 181, 182, 185, 227, 260, 276, 289, 290, 291, 296, 299 broadband, 197, 210, 211, 214 Broadband, 204 business, 21, 28, 29, 35, 36, 41, 42, 45, 51, 53, 54, 55, 70, 71, 72, 73, 76, 77, 78, 87, 89, 93, 94, 95, 96, 99, 100, 102, 109, 110, 114, 120, 124, 125, 126, 127, 130, 132, 137, 139, 140, 141, 145, 146, 149, 150, 153, 154, 155, 160, 161, 162, 167, 168, 171, 172, 173, 175, 180, 185, 189, 193, 194, 195, 202, 203, 205, 206, 207, 208, 212, 215, 276, 285, 291, 293, 299 Business, 8, 9, 29, 46, 47, 67, 70, 71, 82, 85, 102, 113, 114, 124, 125, 133, 148, 153, 161, 166, 173, 179, 191, 208, 216, 282, 283, 285, 286, 287, 290, 291, 292, 293, 294, 295, 296, 297, 298, 299, 301, 302, 305 Business to Business, 8 Business to Customer, 8 businesses, 29, 35, 36, 47, 55, 56, 72, 83, 114, 124, 126, 129, 130, 138, 139, 148, 149, 157, 190, 193, 204, 215, 291, 302 Businesses, 51 Business-to-Business?, 29, 124 Business-to-Consumer, 29, 125 C cause-related marketing, 109, 111 Cause-related Marketing, 8 Channel, 217 Checkers, 151, 152, 153, 154, 155, 156, 157, 203, 260, 310 child, 35, 52, 119, 143, 165, 178, 196 Child, 156, 164 childhood, 8, 63, 159, 164 Childhood, 162 Communicate, 40, 48, 162 communication, i, 21, 22, 23, 24, 27, 33, 34, 37, 40, 41, 42, 43, 44, 45, 46, 48, 49, 53, 80, 81, 100, 101, 108, 110, 112, 113, 114, 116, 118, 119, 120, 122, 126, 130, 132, 134, 135, 136, 170, 174, 179, 181, 195, 196, 197, 198, 199, 200, 201, 202, 203, 204, 205, 206, 207, 210, 211, 216, 217, 218, 219, 220, 221, 222, 223, 225, 226, 227, 228, 234, 238, 262, 276, 283, 284, 288, 289, 296, 297, 298, 299, 311 communicator, 37 deceptive communication, 37, 135 Communication, i, 9, 26, 27, 33, 34, 37, 41, 43, 48, 49, 50, 101, 170, 198, 199, 200, 201, 203, 205, 211, 217, 218, 219, 221, 222, 226, 234, 235, 262, 283, 287, 288, 289, 293, 296, 297, 298, 299, 300, 302, 303, 304, 308, 317 Interpersonal, 41, 199 Intrapersonal, 40, 199 communication by objectives, 34, 201 Communication by Objectives, 34, 201 Communication codes, 33 Communication effects, 217 Communication network, 201 communication process, 217, 219 319 Communication process, 34, 40, 201, 217, 219 Communication strategies, 235, 297 communications, 30, 33, 37, 56, 79, 96, 97, 111, 114, 119, 125, 172, 174, 179, 198, 200, 203, 205 Communications, 9, 179, 293, 299, 305 communicator, 217 Communicator, 33, 34, 199, 217 communities, 24, 33, 39, 41, 63, 92, 124, 125, 148, 149, 153, 154, 155, 156, 159, 160, 161, 162, 163, 166, 167, 173, 174, 177, 179, 180, 196, 198, 206, 212, 214, 282 Communities, 149, 173 community, 8, 24, 26, 27, 32, 33, 39, 50, 85, 97, 102, 124, 130, 132, 145, 147, 149, 153, 155, 156, 157, 158, 159, 160, 161, 163, 165, 167, 168, 170, 171, 172, 174, 176, 178, 182, 194, 196, 198, 211, 213, 214, 216, 224, 225, 226, 227, 239, 252, 265, 277, 286, 288, 290, 297, 305, 313 Community, 8, 32, 33, 83, 148, 149, 159, 160, 161, 265, 278, 284, 286, 290, 297, 303, 305 community based organisations, 27, 252 competition, 34, 53 compliance, 34, 53, 226 compliance gaining, 34, 53, 226 conduct, 42 confrontation, 34, 53 consumer, i, 21, 23, 24, 26, 28, 30, 31, 32, 35, 43, 47, 51, 52, 54, 56, 57, 58, 59, 61, 62, 64, 66, 68, 70, 72, 73, 74, 75, 76, 77, 78, 79, 80, 83, 85, 86, 89, 92, 99, 102, 106, 107, 109, 110, 112, 114, 115, 119, 120, 125, 130, 131, 136, 137, 139, 141, 146, 148, 157, 158, 170, 179, 180, 181, 190, 192, 203, 206, 207, 209, 210, 216, 217, 219, 220, 221, 223, 224, 226, 227, 235, 236, 275, 276, 280, 290, 308, 310 Consumer, i, 8, 9, 29, 51, 52, 57, 62, 65, 68, 74, 101, 102, 110, 125, 155, 227, 236, 285, 288, 289, 291, 295, 297, 298, 299, 308 consumers, 21, 24, 27, 31, 32, 35, 51, 53, 54, 58, 61, 65, 67, 68, 69, 70, 71, 72, 73, 75, 76, 79, 80, 81, 83, 85, 87, 88, 93, 100, 103, 106, 110, 111, 115, 119, 127, 129, 130, 132, 134, 137, 139, 140, 143, 145, 146, 148, 151, 152, 155, 156, 157, 170, 181, 184, 185, 189, 190, 193, 195, 197, 202, 203, 206, 207, 211, 212, 217, 218, 222, 225, 227, 235, 276, 285 Consumers, 51, 53, 58, 68, 70, 71, 85, 121, 132, 193, 202, 223, 285, 308 continuum, 34, 53 corporate, 21, 29, 40, 79, 89, 90, 93, 95, 96, 97, 100, 101, 103, 107, 110, 112, 118, 136, 138, 145, 150, 151, 153, 154, 155, 157, 159, 160, 161, 162, 166, 172, 190, 200, 287, 291, 293 Corporate, 8, 100, 101, 107, 160, 282, 295, 297, 299, 303, 305 corporate social investment, 27, 154, 159, 160, 161, 235 Corporate Social Investment, 8, 27, 154, 159, 160, 161, 235, 282, 295, 299 corporate social responsibility, 110, 145 Corporate Social Responsibility, 8 correlate, 246 correlations, 246 counterfeiting, 30, 85, 97, 98 customer, 35, 36, 43, 44, 51, 52, 53, 54, 55, 56, 58, 65, 70, 71, 72, 73, 74, 75, 76, 77, 78, 80, 81, 84, 86, 88, 89, 93, 94, 95, 96, 106, 107, 109, 110, 115, 117, 119, 124, 126, 127, 129, 130, 139, 152, 172, 181, 185, 207, 220, 238, 239, 262, 266, 267, 283, 291, 294, 313, 314 Customer, 8, 36, 54, 56, 72, 73, 78, 126, 127, 172, 173, 266, 270, 271, 282, 285, 290, 293, 299, 301 customer service department, 239, 313 Customer Service Department, 8 customer to customer, 36, 126 Customer to Customer, 8, 126 customers, 22, 30, 35, 36, 43, 51, 53, 54, 55, 56, 58, 60, 65, 70, 71, 72, 73, 77, 78, 79, 80, 81, 84, 90, 91, 94, 95, 96, 97, 106, 108, 109, 111, 112, 113, 114, 115, 116, 118, 120, 124, 126, 127, 128, 129, 130, 135, 136, 139, 140, 149, 157, 158, 168, 169, 170, 171, 172, 173, 178, 179, 180, 181, 183, 195, 200, 202, 207, 220, 226, 267, 297, 314 Customers, 35, 43, 54, 55, 72, 73, 76, 84, 90, 128, 139, 172, 181, 183, 220, 287 D data, 228, 241, 242, 244, 245, 246, 251 deceive, 36, 300 deception, 23, 36, 42, 227 development, 8, 24, 26, 27, 33, 39, 55, 59, 74, 75, 79, 83, 87, 89, 92, 98, 103, 104, 111, 114, 145, 147, 149, 150, 155, 159, 160, 161, 164, 165, 166, 170, 172, 174, 182, 183, 194, 195, 196, 211, 212, 213, 214, 215, 239, 265, 275, 286, 297, 313 Development, 8, 33, 70, 149, 155, 159, 162, 166, 173, 265, 284, 286, 290, 296 developments, 47, 207, 210, 214, 215 distortion, 37 Do you have any additional questions or comments?, 60 E E-Communication, 37 Effective communication, 34, 37, 201, 235 Electronic communication, 37 employee, 8, 22, 41, 74, 76, 93, 94, 95, 96, 97, 100, 111, 114, 145, 157, 158, 160, 161, 163, 164, 169, 172, 175, 178, 180, 183, 200, 299 Employee, 8, 94, 124, 160, 161, 172 employee community involvement, 8, 160 employee XE "employee" s, 22, 76, 93, 94, 95, 96, 97, 100, 114, 145, 157, 158, 160, 161, 163, 164, 172, 178, 180, 183, 200 Employees, 94 exaggeration, 42 excellence, 164, 176, 180, 290 Excellence, 8, 176 exchange, 45, 70, 145, 195, 198 Exchange, 8, 9, 33, 149, 286 experience, 226 F facebook, 134, 283 Facebook, 38, 46, 123, 134, 197, 204, 211, 212, 213, 215, 226, 283, 284, 291, 292 facial expressions, 43 Facsimile, 37 false, 23, 36 320 falsification, 23, 36 falsification, 37 Feedback, 201, 217 fieldwork, 228 Forms of communication, 43 foundation, 55, 81, 110, 304 Foundation, 41, 159, 163, 164, 172, 174, 175, 176, 177, 178, 289, 304 fraud fraudster, 42 G gestures, 43 global, 40, 80, 88, 95, 96, 98, 101, 103, 146, 148, 166, 180, 183, 184, 194, 197, 212, 213, 214 Global, 9, 103, 214, 298 goods, 30, 32, 35, 36, 39, 46, 58, 68, 69, 75, 76, 91, 92, 99, 102, 103, 106, 107, 108, 115, 126, 150, 169, 190, 192, 196, 207, 208, 209, 238, 256, 304, 310 Goods, 8, 9 Green, 145, 184, 297, 298, 305 green technology, 184 Green Technology, 145, 297 H hierarchy, 59 HIV, iv HIV/Aids, iv Home page, 38 human, 22, 35, 55, 58, 59, 65, 73, 92, 96, 157, 198, 216, 225 Human, 9, 51, 59, 293, 302 human immunodeficiency virus, 9, 154, 159, 160, 162, 163, 164, 165 Human Immunodeficiency Virus, 9 I images, 43 Immunodeficiency, 9 Individual, 40, 199 information, iv, 21, 25, 27, 33, 35, 37, 38, 40, 41, 42, 43, 44, 48, 49, 51, 55, 58, 61, 62, 66, 67, 71, 79, 80, 84, 87, 97, 98, 110, 116, 118, 120, 122, 128, 129, 130, 135, 139, 144, 163, 170, 172, 190, 194, 195, 196, 197, 198, 203, 206, 207, 213, 214, 215, 217, 219, 221, 225, 231, 233, 234, 235, 237, 238, 240, 244, 251, 262, 267, 275, 280, 308, 309, 311, 315 Information, 9, 128, 197, 198, 203 integrated, 40, 112, 118, 145, 159, 197 Integrated, 9, 173, 283 integrated marketing communication, 112 Integrated Marketing Communication, 9 intellectual, 30, 39, 91, 92, 204, 300 Intellectual, 9, 39, 92, 300, 303, 305 intellectual property, 39, 91 Intellectual Property, 9, 39, 303, 305 intelligence, 65 Intelligence, 151, 288 Internal communication, 43 International, 9, 40, 99, 166, 291, 299 internet, 22, 35, 36, 40, 48, 49, 50, 80, 96, 122, 126, 130, 132, 176, 204, 206, 207, 210, 211, 212, 214, 215, 276, 299 Internet, 9, 39, 40, 48, 95, 121, 123, 197, 198, 205, 207, 208, 211, 292, 294 Internet Protocol, 9 interpersonal, 34, 53, 226 Interpersonal communication, 41, 199, 201, 217 Intrapersonal communication, 201 investment, 45, 83, 89, 129, 145, 155, 159, 165, 167, 170, 172, 174, 179, 303 Investment, 292, 296 investments, 45, 51, 60, 83, 145 J Jesus Christ, iii K KFC, 9, 87, 180, 181, 182, 183, 184, 185, 260, 286, 290, 293, 302, 303, 305, 310 L label, 32, 46, 47, 148, 191, 245, 258 Label, 10, 114, 242, 289 labels, 88, 135, 167, 242, 243, 245, 261 Lacoste, 30, 258 language, 43 leaders, 48, 93, 134 leadership, 81, 161, 168, 182, 189 Leadership, 161 loyalty, 30, 72, 73, 77, 78, 80, 81, 89, 92, 111, 124, 127, 128, 129, 139 M manage, 35, 102, 200, 207, 212, 214 management, 44, 67, 72, 75, 79, 93, 107, 109, 110, 116, 118, 157, 163, 168, 169, 170, 195, 214, 226, 227, 284, 288 Management, 8, 65, 66, 72, 77, 109, 113, 118, 130, 172, 282, 284, 286, 287, 288, 289, 290, 291, 293, 295, 300, 302, 304 manager, 75, 200 managers, 41, 55, 86, 113, 116, 124, 158, 161, 199, 201 Managers, 299 managing, 93, 118, 168 Managing, 9 market, 21, 27, 29, 30, 31, 43, 47, 54, 55, 58, 68, 69, 71, 77, 79, 80, 81, 84, 86, 89, 90, 91, 99, 101, 106, 107, 114, 116, 117, 125, 141, 142, 143, 148, 150, 157, 167, 168, 171, 174, 178, 179, 180, 185, 194, 195, 203, 204, 211, 213, 214, 215, 216, 221, 225, 226, 227, 275, 276, 277, 280, 310 Market, 77, 212, 260, 282 Marketing, 8, 27, 44, 50, 60, 82, 84, 98, 107, 108, 110, 111, 121, 124, 183, 283, 284, 285, 286, 287, 288, 289, 290, 294, 295, 296, 297, 298, 299, 300, 301, 303, 304, 305 markets, 46, 54, 73, 86, 87, 88, 103, 104, 113, 114, 124, 125, 129, 151, 192, 207, 304 321 Markets, 300 Mass communication, 41 Mass media, 41 message, 23, 33, 36, 37, 216, 226 Message, 33, 44, 118, 217 messaging, 47, 146, 179 Messaging, 9 mislead, 36, 202 misrepresentation, 42 mobile, 103, 123, 156, 172, 174, 175, 178, 179, 197, 204, 207, 211 Mobile, 9, 156, 170, 171, 179, 204, 282, 303 Multimedia, 9 myspace, 283 N network, 40 Network, 40, 162, 206 networks, 40, 43, 46, 49, 50, 87, 121, 123, 124, 125, 158, 197, 198, 201, 206, 211, 212, 213, 214, 226, 235 Networks, 9 nonverbal communication, 43 bodily postures, 43 facial expressions, 43 gestures, 43 O October 2010, 282, 289, 291, 293, 294, 298, 300, 302, 303, 304 omission, 37 organisation, 43, 201 Organisation, 38, 43, 44, 162, 163, 201, 217, 299 Organisational communication, 43, 201 orphans, 162, 163, 165 Orphans, 10, 164 P packaging, 30, 101, 110, 135, 136, 137, 138, 189, 192, 261 parameters, 241, 242, 245 pep, 298 PEP, 167, 168, 169, 170, 298 persuasion, 34, 45, 53 population, 25, 230 position, 21, 31, 43, 58, 60, 69, 84, 96, 163, 172, 211 positioning, 21, 31, 43, 44, 82, 84, 95, 97, 130, 142, 286 Positioning, 9 positions, 65, 101, 171 power, 34, 53 private, 47, 148, 182, 222, 237, 308 Private, 10, 46, 299 product, 29, 31, 32, 35, 38, 43, 47, 51, 52, 53, 54, 55, 58, 60, 61, 68, 69, 70, 71, 72, 73, 76, 77, 78, 79, 80, 81, 82, 84, 86, 87, 91, 93, 97, 100, 101, 102, 103, 104, 107, 109, 113, 114, 115, 116, 117, 118, 119, 120, 130, 135, 137, 138, 139, 143, 146, 148, 150, 179, 189, 194, 207, 214, 217, 239, 261, 268, 269, 310, 314, 315 Product, 10, 102, 194, 268, 285, 290, 301 products, 21, 22, 23, 24, 26, 29, 30, 31, 35, 38, 39, 43, 46, 49, 50, 52, 53, 55, 58, 59, 60, 62, 66, 67, 68, 70, 71, 73, 78, 79, 80, 81, 84, 88, 91, 92, 96, 97, 98, 99, 101, 102, 103, 104, 106, 109, 110, 113, 114, 115, 116, 118, 120, 122, 124, 125, 127, 128, 130,132, 135, 139, 140, 141, 142, 145, 146, 148, 155, 168, 169, 170, 171, 178, 179, 180, 181, 184, 185, 188, 189, 190, 191, 192, 193, 197, 205, 207, 209, 214, 216, 219, 238, 239, 257, 258, 261, 262, 266, 269, 272, 274, 276, 280, 284, 295, 310, 312, 313, 315 Products, 44, 78, 84, 100, 102, 141, 207, 258, 269, 286, 296, 304 profile, 159 programme, 241 property, 22, 39, 64, 91, 158 Property, 39, 305 public relations, 21, 22, 23, 24, 26, 27, 44, 105, 108, 114, 118, 119, 195, 200, 206, 235, 236, 276, 278, 294 Public Relations, i, 8, 9, 10, 50, 119, 195, 200, 227, 236, 287, 289, 290, 295, 296, 298, 299, 301, 308 Q quantitative, 25 questionnaire, 236, 240, 307, 317 Questionnaire, 25, 229, 234, 235, 236, 237, 240, 242, 244, 286, 307, 317 R receiver, 23, 36 recipient, 217 Recipient, 199, 217 relation, 24, 26, 43, 72, 84, 106, 298 Relation, 298 relations, 22, 23, 44, 95, 107, 108, 118, 119, 195, 200, 227, 278 Relations, 289, 297 relationship, 21, 24, 35, 55, 64, 65, 69, 70, 76, 86, 88, 93, 97, 106, 109, 111, 114, 115, 116, 119, 139, 174, 201, 230, 234, 296 Relationship, 8, 40, 70, 199, 285, 296, 299, 300 relationships, 21, 41, 44, 49, 55, 70, 88, 93, 103, 106, 108, 111, 115, 122, 127, 160, 174, 195, 198, 199, 216, 226, 227, 234, 289 Relationships, 41, 160, 199 research, 24, 34, 53, 227, 228 Research methodology, 27, 228 respondent, 237, 245 respondents, 237, 243, 245, 246, 251 retailers, i, 21, 23, 24, 26, 27, 28, 30, 32, 47, 69, 70, 71, 74, 77, 80, 86, 88, 91, 116, 122, 127, 128, 134, 141, 145, 147, 148, 155, 157, 167, 170, 180, 194, 195, 197, 200, 201, 203, 207, 208, 209, 212, 215, 216, 217, 218, 219, 221, 223, 225, 226, 235, 239, 259,260, 261, 262, 263, 264, 265, 266, 267, 270, 275, 276, 308, 310, 312, 313, 314 Return on Investment, 10 S science, i, 27, 241 sender, 23, 36 Shared Growth Initiative, 8, 166 Short Message Service, 10 322 Signs and symbols, 217 Small group communication, 45, 201 Small Medium Enterprise, 10 social, 22, 38, 41, 42, 45, 46, 47, 49, 59, 63, 65, 67, 69, 72, 87, 94, 96, 97, 104, 108, 121, 123, 124, 125, 134, 145, 148, 149, 150, 153, 154, 155, 159, 160, 161, 162, 165, 170, 172, 175, 179, 182, 185, 186, 194, 202, 203, 211, 212, 213, 214, 215, 216, 222, 223, 225, 226, 227, 235, 276, 290, 303 Social, 10, 25, 46, 59, 65, 66, 110, 121, 123, 124, 125, 175, 198, 204, 210, 211, 212, 215, 221, 223, 226, 241, 282, 283, 284, 286, 288, 296, 302, 304 social network sites, 223 Social Network Sites, 10 South Africa, i, 8, 9, 10, 27, 62, 63, 64, 65, 67, 83, 98, 99, 101, 120, 127, 129, 132, 133, 140, 147, 148, 151, 152, 153, 154, 156, 157, 158, 159, 160, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 176, 177, 178, 179, 180, 181, 182, 183, 185, 186, 188, 189, 190, 191, 192, 193, 194, 195, 203, 204, 207, 208, 209, 211, 212, 216, 227, 235, 236, 240, 272, 276, 282, 283, 284, 286, 287, 291, 292, 293, 295, 296, 297, 298, 299, 300, 302, 303, 305, 308, 315 SPSS, 235, 242, 243, 244, 245, 246, 247, 248, 249, 250, 251, 254 SPSS 11.5, 228 SPSS 16.0, 241 spss16.0, 241 T technologies, 124, 214 Technologies, 9, 204 Telecommunication, 9 television, 41, 42, 108, 115, 117, 120, 134, 136, 140, 181, 197, 203, 219, 220, 226, 240, 262, 276, 315 Television, 10, 127, 262, 311 U United States, 10, 88, 96, 181, 291, 299 United States of America, 10, 291, 299 University of Zululand, i, 197, 297, 299, 300, 308 V variable, 228, 241, 242, 244, 246, 248 variables, 242, 243, 246 Verbal communication, 48 video, 37, 38, 40, 42, 48, 49, 58, 121, 122, 123, 130, 131, 170, 179, 205, 210, 211 viral, 49, 121, 122, 123 Viral, 121, 123, 304 viral video, 123 Viral Video, 123 virus, 49, 121, 122 Virus, 9 Vision, 40, 160 W website, iv, 35, 46, 58, 84, 99, 123, 126, 133, 174, 192, 198, 208, 291 Website, 48, 209, 288, 291 Websites, 38, 212, 262, 311 What steps did you take to encourage students to participate?, 145, 189, 210, 212, 213, 214, 285, 291 word of mouth, 48, 196, 202, 226 World Health Organisation, 10 world wide web, 38, 48 World Wide Web, iv, 11, 38, 48, 205, 304 Writing, 43, 49 Written communication, 49