A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management in the field of Strategic Marketing Johannesburg, 2017 / Sales promotions are ever-present occurrences in modern day markets with companies using them as part of their marketing mix (Blattberg & Neslin, 1990). They also have the ability to effect customer satisfaction and in turn the brand loyalty for that consumer (Li-Xin & Shou-Lian, 2010). Bawa and Shoemaker (2004) found links between non-monetary sales promotions and the brand loyalty of a consumer. Consumers exposed to sales promotions usually had increased purchasing probability and enhanced loyalty to the brand, compared to consumers that were not exposed to the promotion. This study set out to establish the effects on the attitudinal loyalty of consumers who missed the opportunity to partake in a free premium sales promotion. Utilizing a quantitative research methodology, data was collected by means of a structured questionnaire from respondents in South Africa. Internal factors such as the consumers experience of cognitive dissonance; emotion showed towards the brand; and their attitudes towards the brand, were measured and analysed through factor analysis. The most notable finding from the study was that the effect on a consumer’s attitudinal loyalty was contained to the attitude they have towards the brand, irrespective of the level of dissonance that might appear or even the emotional feelings they might have for the brand. Missing the sales promotion would almost certainly alter their perception of the brand and change the internal factors a consumer turns to when searching for information and evaluating their post-purchase consumption. Ultimately, a missed free premium sales promotion will do very little to destroy any brand loyalty that is already present with that consumer. / MT2017

Thesis (MBA)--Stellenbosch University, 2000. / ENGLISH ABSTRACT: Retail sales promotions are one of the most fundamental and high profile concepts of retail marketing. Everyday consumers are bombarded with various forms of information regarding sales promotions. Manufacturers and retailers go to great expense, up to 75% of the United States' marketing expenditures are spent on promotions (Lewison, 1994), but very little is done to measure the effectiveness of these promotional activities (Walters, 1991). Price promotions form an integral part of the marketing strategies of both manufacturers and retailers, yet they are often neglected in terms of assessing their impact on the marketing strategies of individual products. Lewison (1994) supports this statement by saying, "the precise positioning of sales promotion in terms of marketing strategy is often vague". "The increase in sales promotion spending in consumer goods field is greater than that of advertising promotion. However, it is important to know that a substantial part of this money is being misspent, some of it through poor planning" (Shapiro 1977). This statement is dated and probably aimed at the American retail market in particular, but it evokes some relevant questions about the South African domestic market. Are our manufacturers and retailers misspending valuable promotional budget on poorly planned and illogical sales promotions? An article in Sales and Marketing Management (1979) made a good, and relevant, point that "sales promotion is an orphan child of marketing. Both sales promotion budgets and sales promotion objectives are virtually ignored by senior management". More than twenty years later one would expect that the effectiveness of promotions would be monitored more closely and the promotional budgets of both manufacturers and retailers would be subject to close scrutiny by marketing directors. This appears, however, not to be the case, and little study has been done, particularly in South Africa, on the profitability and marketing effectiveness of price promotions within the retail grocery market. The use of trade promotions has risen considerably during the late 20th century. Within companies intense competition and increasing sophistication in sales promotion techniques together with a greater pressure to increase sales has resulted in an increased frequency of promotions. .Market factors have also fostered an increase in promotions. These factors include a rise in the number of brands (especially generic brands) and a decrease in the efficiency of traditional advertising due to increasingly fragmented consumer markets and advertising 'clutter'. A review of the marketing literature on grocery retail price promotions appears to be indicating a move toward a new approach to retailing which sees more focus being given to cutting costs out of the system, usually through improvements to the supply chain. Retail giant Wal-Mart introduced a policy of Every Day Low Pricing (EDLP) and moved heavily toward certain supply chain methodologies like Quick Response and Efficient Consumer Response which focus on reducing inventories and increasing supply chain efficiencies. These policies shun the retail sales promotion in favour of more constant sales trends and supply of goods. It appears that this policy is working, and not just in America, but in Canada and Germany as well (Kalish, 2000). This paper will focus on the inefficiencies of the traditional South African retail price promotion, particularly prevalent in the grocery chains, versus the current American and European retail promotion techniques that focus less on temporary price reductions and more on eliminating costs out of the value chain. A current South African price promotion model is given and a price promotion model for the future is proposed. Without a more complete study it would be immature to think that this paper could be a definitive study of the reasons, cause, and effects of retail price promotions, rather it is intended as a stimulus for further research in this area. This mini-thesis looks at pricing policies in the South African grocery retail market relative to international trends. Particular detail is paid to the grocery value chain and the effects of retail price reduction promotions on the supply chains within the value chain. Inefficiencies in the current South African pricing system are highlighted from both a marketing and a supply chain management perspective. A future value chain is proposed and the migration to this new value chain discussed. International trends like EDLP are discussed with relevance to the South African grocery retail market. / AFRIKAANSE OPSOMMING: Kleinhandel reklame promosies is een van die mees fundamentele and hoë profiel begrippe van kleinhandel bemarking. Daaglikse verbruikers word gebombardeer met verskeie vorms van inligting betreffende reklame promosies. Vervaardigers en kleinhandelaars gaan groot kostes aan, tot 75% van die Verenigde State se bemarkingsuitgawes is gemik op promosies (Lewison, 1994), maar daar word baie min gedoen om die doeltreffendheid van hierdie promosionele aktiwiteite te meet (Walters, 1991). Prys promosies vorm 'n integrale deel van die bemarkingstrategie van beide vervaardigers en kleinhandelaars, nogtans word hulle dikwels afgeskeep in terme van die beraming van hulle impak op die bemarkingstrategieë van individuele produkte. Lewison (1994) steun hierdie bewering deur op te merk dat, "the precise positioning of sales promotion in terms of marketing strategy is often vague". "The increase in sales promotion spending in consumer goods field is greater than that of advertising promotion. However, it is important to know that a substantial part of this money is being misspent, some of it through poor planning" (Shapiro, 1977). Hierdie opmerking is verouderd en waarskynlik spesifiek gerig op die Amerikaanse kleinhandel mark, maar lok sekere relevante vrae uit in verband met die Suid Afrikaanse plaaslike mark. Is ons vervaardigers en kleinhandelaars besig om waardevolle promosie begrotings op ondeurdagte en onlogiese reklame promosies te verkwis? 'n Artikel in "Sales en Marketing Management" (1979) maak die goeie en relevante punt dat "sales promotion is an orphan child of marketing. Both sales promotion budgets and sales promotion objectives are virtually ignored by senior management". Meer as twintig jaar later sou mens verwag dat die effektiwiteit van promosies in detail gemonitor word en die promosie begrotings van beide vervaardigers en kleinhandelaars noukeurig bestudeer word deur bemarkingsdirekteure. Dit blyk nie die geval te wees nie en, veral in Suid Afrika, is daar min navorsing gedoen oor die winsgewendheid en bemarkings effektiwiteit van reklame promosies binne die kleinhandel kruideniersmark. Die gebruik van handelspromosies het merkbaar gestyg in the laat twintigste eeu. Binne ondernemings het intensiewe kompetisie en toenemend gesofistikeerde handelspromosietegnieke tesame met groter druk om reklame syfers te laat styg gelei tot 'n toename in die frekwensie van promosies. Hierdie faktore sluit in 'n styging in die aantal handelsmerke (veral generiese handelsmerke) en 'n afname in die doeltreffendheid van tradisionele advertering weens toenemend gefragmenteerde verbruikersmarkte en advertensie "romme!". 'n Hersiening van die bemarkingsliteratuur op kruideniershandel reklamepromosies blyk daarop te dui dat 'n verskuiwing plaasvind na 'n nuwe benadering waarin meer fokus daarop geplaas word om kostes in die sisteem te sny, gewoonlik deur middel van verbeteringe aan die verskaffingsketting. Kleinhandel reus Wal-Mart het 'n beleid van "Every Day Low Pricing (EDLP)" ingestel en sterk beweeg na sekere verskaffingsketting metodologie soos "Quick Response" en "Efficient Consumer Response" wat fokus op die verminderde inventarisse en verhoogde doeltreffendheid in die verskaffingsketting. Hierdie beleide vermy die kleinhandel reklame promosie ten gunste van meer konstante reklame tendense en verskaffing van goedere. Dit blyk dat hierdie beleid besig is om te werk, nie net in die Verenigde State nie, maar ook in Kanada en Duitsland (Kalish, 2000). Hierdie werkstuk sal fokus op die ondoeltreffendheid van die tradisionele Suid Afrikaanse reklame prys promosie, veral heersend in die kruidenierskettingwinkels, teenoor die huidige Amerikaanse en Europese reklame promosie tegnieke wat minder toegespits is op tydelike prys verlagings en meer op die eliminasie van koste in die waardeketting. 'n Huidige Suid Afrikaanse prys promosie model word daargestel en 'n prys promosie model vir die toekoms voorgestel. Sonder 'n meer deeglike studie sal dit naief wees om te dink dat hierdie werkstuk 'n beslissende studie kan wees vir die redes vir, oorsaak en gevolge van kleinhandel prys promosies. Die bedoeling is eerder dat dit dien as 'n stimulus vir verdere narvorsing op die gebied. Hierdie mini-thesis ondersoek die prys beleid in die Suid Afrikaanse kruidenierskleinhandelmark relatief tot internasionale tendense. Veral word daar aandag gegee aan die kruidenierswaardeketting en die invloed van kleinhandel prysvermindering promosies op die verskaffingskettings binne die waardeketting. Tekortkominge in die huidige Suid Afrikaanse sisteem van prysbepaling word uitgelig uit beide 'n bemarkings en verskaffingskettings bestuur oogpunt. 'n Toekomstige waardeketting word voorgestel en die migrasie na hierdie nuwe waardeketting bespreek. Internasionale tendense soos EDLP work bespreek met betrekking tot die Suid Afrikaanse kruideniers reklamemark.

The objective of this study is to establish the media usage and preference of consumers in the Transkei. The results are of special significance to media planners and advertisers in so far as they will assist in the media selection process. This in turn will form the basis of improved marketing communication between media planners and advertisers on the one hand and Transkeian consumers on the other. The media types investigated were newspapers, magazines, television and radio. The results indicated that three newspapers (Daily Dispatch, Intsimbi and Imvo), three magazines (!bona, Pace and Orum), one television channel {TV 2 - now CCV-TV) and one radio station (Radio Transkei) are extremely popular among the majority of Transkeians. The research results also indicated that the following topics are very popular in all the media types: local news, sport, education and arts/cultural articles. The results further indicated that Transkeians are generally favourably inclined towards advertisements. / Economics / M.Com (Business Economics)

Selecting actors to appear in an advertisement is an important decision which has a crucial impact on the effectiveness of an advertising campaign. The same message, delivered by different actors, produces varying outcomes among consumers. This dilemma concerning the choice of actors occurs particularly in multi-racial societies, such as South Africa, where advertisers have to target different sectors of the community. In multi-racial societies, the choice of actors in advertisements goes beyond the usual commercial reasons. Indeed, two dimensions are generally conferred to multi-racial advertising. Firstly, the use of multi-racial representations allows for the targeting of a wider population that also owns a wider purchasing power. Marketers who want to market their brand use, for example, white and black actors so that white and black consumers can identify with the actors and recognize themselves as the target of the advertisement. Secondly, the multi-racial representations of this type of advertising hold a social role that counteracts the segregated depiction of the society. Consumers who are exposed to a multi-racial advertisement might perceive this social dimension and attribute a social responsibility to the advertisement. The purpose of this thesis is to examine the influence of the above dimensions on the effectiveness of a multi-racial advertisement. On the one hand, this study investigates the Identification Process followed by a consumer exposed to a multi-racial advertisement. On the other hand, it examines how consumers attribute a social responsibility to a specific multiracial advertisement and how this attribution, in turn, influences their responses to the advertisement and brand. Finally, the impacts of both of these dimensions on consumer behaviour are compared and the most persuasive dimension is identified. This thesis draws on Attribution Theory and Identification Theory in arguing that there are strong economic imperatives for adopting a multi-racial advertising approach. The thesis develops a conceptual framework and tests empirically hypotheses regarding the key constructs and moderating variables. The empirical results point out that both dimensions symbiotically influence the effectiveness of a multi-racial advertisement. Specifically, the results highlight that the social responsibility attributed by the viewers to the advertisement influences their behaviour more than the Identification Process.

The objective of this study is to establish the media usage and preference of consumers in the Transkei. The results are of special significance to media planners and advertisers in so far as they will assist in the media selection process. This in turn will form the basis of improved marketing communication between media planners and advertisers on the one hand and Transkeian consumers on the other. The media types investigated were newspapers, magazines, television and radio. The results indicated that three newspapers (Daily Dispatch, Intsimbi and Imvo), three magazines (!bona, Pace and Orum), one television channel {TV 2 - now CCV-TV) and one radio station (Radio Transkei) are extremely popular among the majority of Transkeians. The research results also indicated that the following topics are very popular in all the media types: local news, sport, education and arts/cultural articles. The results further indicated that Transkeians are generally favourably inclined towards advertisements. / Economics / M.Com (Business Economics)

The rapid increase in the expenditure on below-the-line promotions (consumer and trade promotions, direct marketing, sponsorship and public relations) relative to above-the-line advertising (television, radio, print, outdoor and cinema) in South Africa has earmarked a new era of integrated marketing communication strategies across all sectors. Ultimately, this strategic shift has brought about a need to better understand the relationship between above-the-line advertising and below-the-line promotions and to measure the impact of such changes on company sales/profits over the long-term. In the research undertaken amongst 250 senior marketing, brand and product managers of South African brand-owned companies, the relationship between above-the-line advertising and below-the-line promotions in the marketing of South African products and services was investigated across six different economic sectors. It was evident from the findings that most brand-owned companies currently integrate above-the-line advertising and below-the-line promotion activities. The study shows that most brand-owned companies in South Africa combine press, radio and television (above-the-line) with consumer promotions (below-the-line). The most frequently used above-the-line advertising medium is television, which is also seen as the most important mode to support long-term brand building amongst consumers. In turn, print is regarded as the most important above-the-line mode to support trade franchise building. Most frequently used below-the-line modes include direct marketing and public relations. Direct mail and cooperative advertising are seen as the most important below-the-line consumer and trade franchise building modes respectively. Although marketing communication expenditure is positively skewed towards above-the-line adverstising, most recent trends show a gradual increase in the use of below-the-line promotions. To prevent a brand's sales/profits from decreasing over the long-term due to too high below-the-line promotional expenditure, the study encourages a sound balance between above-the-line advertising and below-the-line promotions. Although the ideal ratio of above-the-line advertising to below-the-line promotions is related to the nature of the product and service being marketed, the extent of competitive activity in the market and the frequency of purchase, amongst many other salient factors, the study regards a 60/40 ratio as the most ideal for building long-term brands. On the other hand, a ratio of 35/65 is regarded as the critical point at which company sales/profits may deteriorate because of too high below-the-line promotional spending. In conclusion it can be said that the marketing communication industry of South Africa has entered a period of integrated marketing communication practices which requires sound marketing communication budget strategies conducive to the long-term survival of South African products and services. / Business Management / D. Com. (Marketing Communication)

The rapid increase in the expenditure on below-the-line promotions (consumer and trade promotions, direct marketing, sponsorship and public relations) relative to above-the-line advertising (television, radio, print, outdoor and cinema) in South Africa has earmarked a new era of integrated marketing communication strategies across all sectors. Ultimately, this strategic shift has brought about a need to better understand the relationship between above-the-line advertising and below-the-line promotions and to measure the impact of such changes on company sales/profits over the long-term. In the research undertaken amongst 250 senior marketing, brand and product managers of South African brand-owned companies, the relationship between above-the-line advertising and below-the-line promotions in the marketing of South African products and services was investigated across six different economic sectors. It was evident from the findings that most brand-owned companies currently integrate above-the-line advertising and below-the-line promotion activities. The study shows that most brand-owned companies in South Africa combine press, radio and television (above-the-line) with consumer promotions (below-the-line). The most frequently used above-the-line advertising medium is television, which is also seen as the most important mode to support long-term brand building amongst consumers. In turn, print is regarded as the most important above-the-line mode to support trade franchise building. Most frequently used below-the-line modes include direct marketing and public relations. Direct mail and cooperative advertising are seen as the most important below-the-line consumer and trade franchise building modes respectively. Although marketing communication expenditure is positively skewed towards above-the-line adverstising, most recent trends show a gradual increase in the use of below-the-line promotions. To prevent a brand's sales/profits from decreasing over the long-term due to too high below-the-line promotional expenditure, the study encourages a sound balance between above-the-line advertising and below-the-line promotions. Although the ideal ratio of above-the-line advertising to below-the-line promotions is related to the nature of the product and service being marketed, the extent of competitive activity in the market and the frequency of purchase, amongst many other salient factors, the study regards a 60/40 ratio as the most ideal for building long-term brands. On the other hand, a ratio of 35/65 is regarded as the critical point at which company sales/profits may deteriorate because of too high below-the-line promotional spending. In conclusion it can be said that the marketing communication industry of South Africa has entered a period of integrated marketing communication practices which requires sound marketing communication budget strategies conducive to the long-term survival of South African products and services. / Business Management / D. Com. (Marketing Communication)