A Marketing JourneyConventional, Disruptive & Digital Marketing

Elga Yulwardian, MM, MBuss IT

Jakarta 12 September 2014Pelita Harapan University Graduate School of Management

Discussion Agenda

Start Up Company Marketing in Common

Digital & Disruptive Marketing Strategy

Discussion Objective• Understand implementation of traditional / generic marketing

strategy in the real world (using Start up company as an

illustration)

• Realize some altered momentum of differentiation marketing along

certain timeline

• Increase knowledge and understanding of the essential of digital

marketing in today marketing strategy

Marketing in Common

Marketing Mix

7 Ps is an extension of 4Ps Marketing Mix by E. Jerome McCarthy

Advertising

Public Relation

Personal Selling

Sales Promotion

Promotional Mix

Start up Marketing Practice in Common

Create the marketNo marketing budget

Limited human resource

Market Growth

Distribution focusDistributors based penetrationExpense to maintain distributorsPrice is controlled by distributors“distributors incentive trap”

Founded

Product (no research)Price (by intuition)Place (distribution)

PeopleProcess

No PromotionNo Physical Evidence

Some free cash flowVery simple media adsVery simple promotionPromotions: the distributors' request

Market Maturity

Some competitors coming into marketStart to create marketing initiativesAllocate higher marketing spendingExpand its distribution channel more deeply into retail

Product (advance)Price (hard to change)Place (penetrate retail)PeopleProcessPromotion (enhance)Physical Evidence (initial)

What Next?

Diversification

Disruptive Marketing

In Digital Era?

In similar situation:

Marketing Mix

7 Ps is an extension of 4Ps Marketing Mix by E. Jerome McCarthy

Advertising

Public Relation

Personal Selling

Sales Promotion

Promotional Mix

Indonesia Digital Landscape

Lebih dari 60 juta Pengguna Internetwww.InternetWorldStats.com, 2012

Lebih dari 54 juta Pengguna Facebookwww.Facebook.com, 2012

Indonesia memiliki:

Jakarta adalah Kota No 1 Dunia dalam jumlah Tweetwww.SocialBakers.com, 2012

Lebih dari 90% mengakses Social MediaMark&Plus Survey, 2012

Is Digital Marketing

that Simple?

Picture source: kewmarketing.com

Corporate Organization

Corporate Strategy

What About

the Customers?

Source: Harvard Business Review, December 2010, p.64

The customers' decision journey

is very different now!

Source: www.strotherweinberg.com

Source: Harvard Business Review, December 2010

Corporate Strategy

And also, their fingers’ power!

Example: Maldives Marriage

Case Study: Maldives Marriage Insult

October 2010.The French couple paid for US $ 1500 for the wedding Abusive and abhorrent local Dhivehi language on the wedding vows

The incident impacted to the Maldives tourism performance.

Source: Ministry of Tourism, Arts and Culture,

Republic of Maldives

Case Study: United Breaks Guitars

"United Breaks Guitars" is a protest song by Canadian musician Dave Carroll and his band, Sons of Maxwell; witnessed baggage handlers throwing his $3,500 Taylor guitar. It chronicles a real-life experience of how his guitar was broken during a trip on United Airlines in 2008.

United Airlines stock price plunged 10% costing shareholders $180 million.

The customers' behavior has changed

Source: Alyson Stone, Desk.com

The customers’ Alter Ego :

They can be anyone on the net

Digital is a disruptive technology

That enable disruptive marketing strategy

Disruptive content marketing

One Red Paper Clip

Ririn Dumin

Disruptive co-creation marketing

Vans.com

Gantibaju.com

Disruptive community marketing

Woot.com

Disruptive marketing analytics

Effective Measure

There are many analytical tools that

can provide interesting information

related to digital communityThe graphic is a result of Gephisoftware

that is run my facebooknetwork data.

Disruptive marketing targeting

Source: Admax Network

Re-targeting

Disruptive movement marketing

www.dukungIndonesia.com achieved Bronze Medal

– Pinasthika Award 2011for category Digital

Marketing

(in this case, the was no Gold and Silver winner)

Disruptive customer service

Dedicated Resources

Zapposis also very well-known company that is successfully create social culture in their organization. All of Zapposemployees are functioned as customer services and deliver happiness to their customers.

Crowdsourcing Platform

Dedicated Social Media Customer Service

http://www.jabberwacky.com/george

Dedicated Resources

Dell is one of the most advance company in implementing Social Customer Care. The Dell Social Media Command Centre is very popular as a dedicated resources for this matter.

Best Practice Benchmark

Social Media Platform

Picture source: www.moxiesoft.com

No choice but implement!

The voice of top management

In late 2009, Forrester published a white paper, No Media Should Stand Alone – An Empowered Report. Defining the Roles of Owned, Earned, and Paid Media in Online Marketing by Sean Corcoran

Digital Marketing Journey

Foundation: Grand Strategy Development

Own MediaStreamlining

Share MediaOptimization

Media PlacementOptimization

1st PhaseAcceleration:

Initiate Digital Connection

2nd Phase

Digital ActivationEnhancement

Digital MediaPartnership

E-CommerceCollaboration

Synergy: Create Digital Ecosystem

3rd Phase

Owned DigitalCrowdsourcing

Platform

Cross MediaCampaign

EnableE-Commerce

Sustaining: Maintain and Innovate

4th Phase

3-5% of overall marketing budget 5-7% of overall marketing budget About 10% of overall marketing budget > 10% of overall marketing budget

CommunityEvangelistStrategy

New MediaCampaign

Digital Strategy Journey Model

Best Practice Benchmark

Social Media Platform

Company have to be very careful in investing and implementing their Social Media Platforms.

Follow the mainstream platform, to some extent is the safest way.

Thank you and let’s discuss