New Marketing in Digital Communication

Widespread use of the social media has deep impact to marketing concept. Social media is not another channel. It is not enough to move marketing material from mass media to internet. Social media change the character of marketing. Mass Media is one way communication. Social media is two-way communication in real time. So, social media forum see a promotion like in television as a distraction. That is spam and interruption. So, digital community refuses hard selling promotion in social media.

Internet user ignores a one-way promotion style like television promotion. That is a distraction and consume time. Today. everyone can create promotion in social media and website. The Internet is a place where people search for the desired information. We can not get attention to all promotion. So they refuse irrelevant promotion that distracts. They named it spam. Mass media advertisements are interruption or interrupt time and space. They read the corporate website or product profile only if they need them. Thus on social media, marketing has to adjust to the different environment.

Feedback Loop In New Marketing

Social media communication has several characteristics that have an impact on marketing. First, communication via the internet runs two or more simultaneous directions. Consumers are more powerful than the era of mass communication. Power to ignore, carry out negative campaigns and positive campaigns. Second, the product life cycle is often short. Many new businesses have better and more efficient offer. Third, competition is getting tighter. Digital communication allows new players to learn and create new business. That is competitor.

Marketing concepts need to make adjustments for new environment. There are three reasons. First, because the old concept is more designed for one way communication. That does not suit for simultaneous two-way communication. Second, social media and internet have the powerful feature that helps marketing. They have the feature that gives simultaneous feedback from the segmented market. So, with this feature, we can improve our products and promotion. Third, we have to select the market segment that relevant to your offer.

In this article, we discuss concept of marketing in the era of digital information. These marketing concepts continue previous marketing goals. This marketing concept also accommodates digital information. Based on Hermawan Kertajaya categorization, marketing architecture consists of three parts. They are strategy, tactics and value. Marketing architecture in digital society changes character.

1. Strategy Communitization

The strategy of designing what value is to be promised to a particular market. The strategy the after formulating the market, competitors, regulations, culture, and capacity of the company. The concepts in the previous marketing strategy are segmentation, targeting, and positioning.

The strategy of designing what value that we offer and promise to segmented market. That offer has value for the customer and different than competitors. In the old marketing concept, that is positioning. We make positioning after consider the environment and company. The concepts in the previous marketing strategy are segmentation, targeting, and positioning.

The environment includes market, competitors, regulations, and culture. Compare environment and capacity of the company, then we found market segment opportunity.

Segmentation and targeting help companies to found most hungry market for your offer. Positioning is company’s offer of unique/special benefits to market segments. In the digital two way communication, positioning is relevant. But it have new character. That is not concept that created by company only. Community and company create positioning together, by two way communication. Thus the creation of positioning is through a process of feedback from the community.

2. Tactics: Cocreation, Ideavirus, Permission, Ideavirus, Testing

Tactics attempt to realize the idea of positioning. Old marketing conceptions about tactics are differentiation, marketing mix and selling. Marketing mix are product, price, place, and promotion. The conception are marketing program to deliver value.

CK Prahalad formulates relevant cocreation in interactive digital communications like today. Experience products is by producers or marketers alone. Collaboration of companies, consumers, suppliers and distribution partners create products. Information technology allows individuals or consumers to give feedback for products. Consumer can make modification. So, they can create products based on their character and choices. In interactive communication, prices are also cocreation. They design price by colaboration.

The optimal form of content-content that gets approval is ideavirus or viral content. the was also initiated by Seth Godin. Ideavirus is a matter of how to help consumers spread the on the internet. Ideavirus has two characters. It is a promotion and something that is relevant to the market segment. Another tactic in digital communication is testing. Social media and search engine allows marketers to get instant feedback. Feedback from market segment is useful to improve the next marketing tactic.

3. Value: Character Building

In the previous marketing concept, this value includes brand, service, and process. A brand is not only producer name label on products. A brand is positive association in customer mind about name. Company offer value. If customer and market segment recognize the value, the have good brand association to a name. Service support products to create value for market segments. Process design so that service and products achieve optimal performance.

In the situation of digital communication, the brand creation is more difficult. In mass communication, brands has one direction. The audience doesn’t have a great opportunity to express objections to other audiences. But in digital communication, audience can convey negative ratings on the brand. Market segments know which fake and original brand characters. In this situation, the company has to create authentic brand character. Brand building is create an association of product with their:

  • functional performance,
  • positive emotional associations,
  • and giving experience.
  • social and environmental commitments.

That way the market segment finds a soul partner to create a better world.

Why Millenial Gen Have No Brand Loyality?

The study said that the millennial generation has no brand loyalty. They easy-going form one brand to another brand. Why?

  • People in the older generation need a brand to help decision making to find a good product. In the previous era, the communication source is one to many communication or mass media, they have no forum or peer group that give them information and review. So they laid to most reputable and famous producer or brand.  The reputable brand keeps their reputation and gives a good guarantee. 
  • Millenial generation does not depend on good reputation brand to find good products. They can read the customer review and their group and forum review. They more believe in their friend than advertising. The forum already has a role as the previous brand. Instead of using a brand that socially created, they use digital forum or group. 
  • Internet and computer reduce many business processes. It enables a company to find good outsource.  It also reduces marketing cost. So competition so high. So many companies that disrupt older old style business model. So millennials prefer to choose a better offer. The old brand is not necessary. The new company often offer very good offer.
  • Millenial often faces new wonderful ideas and new products.  So, they also open to new products.
  • Millenial has a growing nerd. A nerd is an enthusiastic group that opens to innovation. They have a forum about their enthusiasm. They like to try new products. They also like to share their ideas, so their follower often to adopt their ideas.
  • Millenials aware that so many inventions that improve their hobby or work. So good brand products often obsolete because there better invention that more efficient and more effective. So they open to new products than loyal to the old brand.
  • They get information about products is not from the brand ambassador, but from their groups. That includes the negative comment about a brand. So they can lose their loyalty. 

Example of Unusual Great Value Proposition

Big businesses have extraordinary offers or value proposition. The offer is tempting to consumers, and competition is difficult to imitate. You are also difficult to imitate. But by studying various kinds of offers from big businesses, hopefully, you can find and make offers that are also extraordinary, useful and difficult to imitate competitors.

1. Body Shop

It is brand proposition of body shop: Embed social activism in business. The company has a great name because it associates with social activism. They are not the first social activism. Although she copied the brand name and the idea of recycled packaging from a U.S. company in 1976 and had only accidentally practiced social activism 10 years later, Roddick introduced the idea of creating stories behind cosmetic products.

2. Microsoft

Microsoft is not the first GUI operating system. But they realize ubiquitous computing.  Although not an early pioneer, Gates has introduced operating systems into the mainstream since 1975 and arguably made software an essential part of computing by taking advantage of the network effect.

3. Apple

It is the unusual offer of Apple: Transform how people enjoy technology. They transformed the computing, music, and phone industries by introducing the Mac (1984), iPod (2001), and iPhone (2007) with cool counterculture approach; also reinvented animation pictures with Pixar (2006).


IKEA have original brand mission : Make stylish furniture affordable

They create affordable price and smart furniture. They produce it by creating mass foldable furniture and distribute it in self-service retail shop. It reduces production cost and retailer shop.  For customer, it gives affordable price and self-service experiential stores (in the 1960s) and smart.

5. Virgin Group  Richard Branson

Founded by Sir Richard Branson, Virgin have brand mission: Bring excitement to boring industries. They will give business with risky and diverse ventures under the single brand name since 1970, Virgin Group;  They applied unconventional 400 business practices company-wide. our core consumer sectors of Travel & Leisure, Telecoms & Media, Music & Entertainment, Financial Services and Health & Wellness. They recently attempted to create commercial spacecraft with Virgin Galactic (2004).

6. Walt Disney

Almost all children in the world like Walt Disney.  Their brand proposition is Create magical world for families. That proposition energize and inspire the company to create great things. They created successful animated characters and brought them into mainstream business with licensing and theme park experience.

7. Southwest Airlines

Although he got his ideas about the low-cost airline model and corporate culture from Pacific Southwest Airlines (established in 1949), Kelleher has brought low-cost airlines into the mainstream since 1971 and inspired worldwide adoption of the business model.

8. EBay

Connected sellers and buyers with eBay (1995), facilitated transaction and governance with user ratings and inclusion of PayPal as a subsidiary (2002)  Ebay have motto: Create user-governed market space.

9. Google

Since 1998, Google has been reinventing the search engine redefined online advertising people enjoy search engine-based advertising platform. Make the world’s information organized and accessible


Since 2001, Wikipedia has been redefining the encyclopedia and popularizing the collaborative wiki approach developed by Ward Cunningham (1994)Create a publicly editable encyclopedia.

11. Facebook

Facebook Although he did not invent social networking (Friendster was introduced first by Jonathan Abrams in 2002 and MySpaceby Chris DeWolfe and Tom Anderson in 2003; Facebook was introduced later in 2004), Zuckerberg expanded the idea by introducing Facebook Platform (2007) and Connect (2008)and expanded social networking to a wider presence

12. Linkedin

What unusual offer that Linkedin provide? Reid Hoffman creates Linkedin to connect professionals around the world. LinkedIn introduced online professional networking and new ways of organizing professional contact information; someone says it will soon replace the traditional resume for job search. 

13. Twitter

What Benefit that Twitter offer?  Build by Jack Dorsey, Twitter provide the tools to track friends and other interests. Established in 2006, Twitter pioneered the idea of mini-blogs on the Internet and how people can broadcast their ideas to their network.

Principle of Business Development

Since the early of civilization,  human beings have known that business has an important role to reach wealth.  Business gives what individuals and society need.  Today, people learn business to get sustainable money. There is a lot of article and book about business, include my article about business development steps. So,  it’s not easy to recognize what matters from the business.

Studying business from business history gives insight into what’s important in business. History shows something that always exists in the development of a business.

The important thing in the business is efficiency and sharing benefits competitively. Efficiency allows entrepreneurs to get profit from the business transaction. It also helps entrepreneur offer a good price.

how to do business efficiently?

The way to run it is by specialization, the scale of production, and create more fit between customer problem and company solution. So continuous market research is important to create the best-fit offer. Business tells the offer in copywriting format or advertising in several media channel.

Specializing for efficiency

Since barter trading, people know that business needs efficiency. At that time efficiency is achieved by specializing in production. Specialization and focus in creating a product encourage people to produce products quickly, cheap and good. Because he has put his time and energy into a field, he will find a better, faster and cheaper way to compete in a market.

Because specialization is efficient, the state tends to specialize in its core business areas. The city also has its own specialization.  specializes, villages specialize. That specialization does not have to be a whole country or city only make one product, but there is a dominant product.

Adam  Smith developed the idea of specialization for this efficiency by offering a division of labor. When within the company, there is a division of labor, with a smooth production flow, then productivity will good and growth occurs.

For efficiency too, Ford advised workers to be obedient without thinking, so that the conflict between the management team and the workers is minimized.

With the division of labor, the employees will handle the tasks easily and quickly mastered the production process.

Today, specialization is not only in production house but also they produce for specific market. Therefore, they do segmentation and choose specific market segment.  By target for the specific market, the business can make attraction offer, because they program their products for the specific segment.  To match

Large production scale for efficiency

Creating large quantities of products will reduce production costs per product. In addition, producers can also press profit margins, in the hope if the goods sold a lot, total profits are also many.

The production cost of a product has fix cost and variable cost. Whatever quantity of product that we made, fixed cost does not change, not multiply. And the variable cost increases when quantity also increases.

Machinery for Mass Production

Consequently, after a business has an orientation to mass production, they need technology, machine, teamwork, and market that they buy.

Humans are constantly looking for ways to enlarge the scale of production, using animal power, heavy machinery, and computers, aiming to increase mass production.

Teamwork for Mass Production

To manage large machine and large market, they then need a team and manage them. Therefore, business needs leadership and management discipline.  Vision make the team more cohesive tea