Efficiency Concept Marketing

Marketing is an effort to give benefits profitably.

Marketer gives benefit to the customer. Then customer gives money or profit to the marketer.

To make that transaction happened, it is not easy. Producer produce product and expense some cost always have resulted. But marketer, they promote and create marketing activities, they do not always get a result. Cost of marketing can be unpredictable.

But marketing is a necessary function of a business. Imagine you create the product that cannot sell. No profit. Then producer didn’t get money or profit.

Marketing Ideas that Reduce Many Costs

Important but unpredictable cost. That is marketing. Fortunately, thinker of marketing has the idea to create efficiency in marketing activities.

1. Efficiency through target market decision. Serving everyone It will spend exhausted energy. It is better to determine the target market and focus to serve that target market. Serving the target market is more cost-efficient than serving everyone. Serving everyone is very expensive and inefficient because it means preparing products, distribution channels, promotions, and prices for several buying power.

2. Efficiency through Brand and customer satisfaction. Persuade new and uninitiated consumers to your product is much more costly than inviting consumers who are familiar with and satisfied with your products and services. Efficient because it will encourage repeat purchase. Enterprises make a target market considering your business, your product.

3. Efficiency through checks and improvements with information technology support. With checks and risk improvements occur, the inaccuracy between product/promotion with the needs/want/expectation of customers can be minimized.

Information technology not only plays a role in communication between companies and customers but with digital track record also provides data on market behavior. This digital track record signals their response to advertisements and products as well as signals about what the market likes and dislikes. Such information is indispensable for achieving the marketing objectives efficiently.

That way the cost of error can be reduced.

Easily Identify Market Opportunity

If you found business ideas that suit with your passion,  then you need check market opportunity. The market opportunity is market demand. There is people group that will need and love to buy your products. You need to check market opportunity so you know it is worth spending. You will know, it is worth to spend your money, time, energy and attention? Then, identify market opportunity is often expensive, so I offer an easy and cheap way. It identifies market by online tools, like google keyword planner, Google, Google Trend and Facebook.

What you need to do to prepare is collect keyword about the product. Not just keyword in your term, but keyword in their term.  For example, if you want to sell fishing accessories, you write a list of keyword: buy bait, buy a kayak,  fishing in Arizona, cloth for fishing, fishing rod et cetera.

 

1. Google Keyword Planner

You can access Google keyword planner in this link adwords.google.com. You sign up or sign in to that website.  Then click tool icon at top right, then click keyword planner.

identify market opportunity

Google keyword planner help you to identify market opportunity. Plug your keyword at this tool, then it gives you statistic about keywords.

research-market-opportunity

That is quantity keyword that audience type on google. That is mean market demand. At least indication. You can add another keyword that gives you a strong indication, like the cheap fishing pole. You will found market demand

2. Google Trend

Google trend give you information about how many people that search the keyword in annual by month. This data gives you information about when market demand in peak and in low.

3. Facebook

Then you check facebook. Plug your keywords into facebook text box.  I mean keywords about the product on Facebook. Choose fanpage. We will check fanpage for the product. Check interaction in the fanpage. Many commercial interactions indicate a good opportunity.

 

 

Disruptive Marketing in Interactive Communication

Disruptive Marketing is marketing that sensitive to business disruptive.

In previous post I write about fall of market leader, Nokia. Nokia is not alone. Many malls and retail shops in Indonesia are out of business when the market prefers a new way of shopping, which is online shopping. The market much likes to shop through online ordering via a virtual market (marketplace) such as Tokopedia, JD.id, shopee.co.id, bukalapak.com and so on. The world of public transportation is also experiencing similar things. There is a market trend to use taxis and motorcycles with online reservations such as Uber, Gocar, and Grab the mobile application.

The phenomenon of market interest shift over these different product categories is driven by the widespread use of internet-connected smartphones. The impact of information technology is behind the disruption symptoms. Disruptions The old business models are replaced by more efficient businesses with information technology support.

Information Technology Era and Disruption

In today’s information technology era, businesses are required to be sensitive to new categories that can be more efficient and effective that undermine the old categories. That is Disrupt phenomenon.

Students as candidates for business managers are also required to have sensitivity in the midst of rapidly changing situations. Their briefing in the form of lectures and teaching materials material to them also needs to undergo changes or updating taking into account the role of information technology in business.

This textbook is an attempt in that direction, updating the science of marketing by weighing information technology. This textbook offers a more sensitive and flexible approach to changing the business environment. The old marketing concepts are not entirely abandoned because they are still relevant today, but with the use of information technology. There are 3 updates that  I offer.

  • We need to add the idea of Segmentation and Targeting with use of information technology that facilitates segmentation as well as new, unknown targeting methods prior to the widespread of information technology.
  • The concept of Targeting and Positioning is complemented by the preparation of personal and flexible buyer persona and value proposition, given that communication is now more interactive and companies are required to be flexible with changing needs.
  • The competitive advantage not only looks at product characteristics alone but comes with a business model sensitive to new changes.
    With the updating of marketing knowledge, it is hoped that textbooks will be able to adjust to rapid changes and can perform marketing activities more effectively and efficiently with the use of information technology.

That is disruptive marketing that quick respond to market change behaviour.

 

Think Forward Through Learning History of Advertising

Specific advertising techniques or persuasion are not lasting or always work. That is learning point from the history of advertising in America. Even though they are not at all discarded, enriched with new strategies.

There is competition among advertisers that often make some technique saturated. The audience also has experience, sometimes bad. So it makes them immune to the mere technique of persuasion. So to build attraction, it is not only by play at the level of advertising but also products and services, as well as distribution channels.

We will show you the history of advertising.

Headline in the History of Advertising

In the beginning, since American issue the first magazine in America in 1741, a headline with the title of the product is enough to attract and persuade people. It’s used by many people to advertise in magazines. Create a headline that describes a shopper, profession, the product is enough.

The Superlative Claim Era

Samuel Johnson commented on the year 1758 about advertising, whatever is common is not interesting. His commentary has a deep impact to the history of advertising until now.

So many ads so much in his era, so there are unread. Advertisement needs to grab attention by enlarging appointments among so many advertisements.

Then the ads compete to make the claims as the best product. The headline that claims to be the world’s best product grows like mushrooms in the rainy season.

Then, a new era begins. Headline with great promise is no longer appealing, and then comes the breakthrough of advertising using plain language.

Useful Plain Language Era

In  1870, John E Power offered a short, to the point  advertising style, honest and convincing. How does Power convince? By giving a reason, why buy the advertised product.

This advertising style is named “Powers’s Style”. His famous saying, “if the truth is not worth speaking, fix it”.

Nevertheless,  there are still many ads that make excessive and deceptive claims. Drugs are packed in syrup and then sold to mothers and children. There are also ads about drugs that later became known as dangerous drugs.

Mail advertising Era

Direct Mail Advertising appears as a breakthrough to attract the attention of the market.

Advertisers send postcards and even catalogs to targeted markets. American President Grover Cleveland signed a free mail delivery. Then the direct mail ads create the bubble that excessive for the audience.

Branding and Packaging Era (1901-1910)

Advertising competition through various media more high competition. Breakthroughs appear to perform better than others, with brands and packaging. Building this brand builds influence into the market through campaigns. This campaign is a series of ads to influence the market, not once two ads. Advertiser creates several kinds of the channel of communication, such as  Zeppelin, air balloon.

Some brands even survive today, such as Coca-Cola, Quaker Oats, Lifebuoy. Their work is supported by advertising agencies, not done alone.
Advertising agencies are mushrooming and becoming an industry and lasting until now.

In 1906, the American Congress objected to unproven advertising claims. They make regulations about food and beverage advertising.

Consumtivism Era (1921-1930)

In this consumerism era of ease of payment offered through credit for consumer goods, such as refrigerators, ovens, stoves, cars, radio. Product sales increase. The advertising budget is getting bigger to boost demand. This large advertising budget is included for claims that have proven to be false.

Science play key important role for history of advertising. In 1923, advertising was studied scientifically, about scriptwriting strategies and product claims. Ads are designed for effectiveness by tailoring to customer attitudes and behaviors. Ads focus on clear product claims based on information obtained from market research.

In 1929, the American stock market fell, signaling the start of a great depression era. Many businessmen cut advertising costs. Unemployment spreads in America population.

Soap Opera Era (1931-1940)

The great depression era gives pressure on the print media business. The spread of media has dropped dramatically, the print media’s income from advertising has declined.

Entrepreneurs switch advertising to a radio. Radio became a famous entertainment center. Entrepreneurs create advertising or sponsor for radio include opera. Radio theater is growing rapidly.

Amid the cost of advertising slumped while ad competition is also tight, advertising costs are no longer an option, a breakthrough to attract the attention of viewers by doing differentiation. Advertisers focus on how products differ from competitors.

War, Phone and Television Era (1941-1950)

War propaganda spread in the variety of media channels, along with commercials. For viewers, ads are getting crowded, crowded, chaotic, and noisy. John Caples pioneered the research and tests of various versions of advertising and audience reactions.
Although the advertising watchdog has been established, the lie of ad claims can still be done by the support of figures who are considered to have the authority of knowledge, such as doctors.

A new media emerged in 1941, Bulova Clocks, commercial television. This television is capable of arousing the interest of viewers. Television stations have sprung up. In 1946, America had 12 television channels. At that time half the population of America has a phone.

In order to compete in the midst of this tight competition, Rosser Reeves, of Ted Bates Agency, introduced a new breakthrough in advertising. The breakthrough is unique selling proposition (USP). It builds the image of product benefits, beyond quality and comfort. The USP selects unique product benefits or different from competitors’ products.

Creativity Era (1950-1960)

The advertising business is growing rapidly, especially on Madison Avenue.

Creative teams and artists play important role in the creation of advertising and advertising scripts. Television ads are also the preferred media of advertisers.

The advertising strategy that is widely used in this era to identify products with a person’s character.

Ads do not always talk directly to the product but talk characters. Suppose Marlboro cigarettes featured cowboy characters. Jutsu is used until now. With the ad’s support, Marlboro posted the largest sales in the world.

Ogilvy’s famous ad, “Hathaway Man” is selling T-shirts, but the show is a character director with a collared shirt and ties with the sunglasses next door. The ads are as stylish as news, so readability increases. This ad gets great attention and sales.  This is played important role in the history of advertising.

Consumer Revolt Era (1961-1970)

In the decade, there are so many of advertisements in multiple channels. People bore to read advertising. Consumer refuses and opposes ads include creative advertising.

Ads advise people to conformity or follow the others. In this era of encouragement for different or individuality. This individuality is not selfish but the courage to display a personal character that is different from the average person.

In this era, advertising adapts to an artistic approach rather than a scientific approach and celebrates individuality. Pepsi identifies its products with the new generation. Headlinenya, You are in the Pepsi generation. 7 Up distinguishes himself with “Uncola drink”.

Due to strong consumer resistance, advertisers publish indirectly, but through support for popular events. Super Bowl, sporting events began airing on CBS and NBC, in 1967. Advertisements were inserted on the show. How to advertise like this still lasts until now. That is breakthrough in an age of consumer revolt.  This is playing important role in the history of advertising.

Brand Image Era

In this era of developing industries, the industry produces products and they need advertising to help sell more products.

There is a tendency to use dirty advertising, so the American advertising association sets up an agency, the National Advertising Review Board to monitor advertising.

Meanwhile, US Congress banned cigarette advertising.

The ads compete to look good, including using good songs. Ads in the form of songs, even interested and get requests on the radio.

In this advertising high competition, Herbert Simon, Al Ries, and Jack Trout make a conceptual breakthrough that allows small and medium entrepreneurs to compete amid tight advertising.

The background of their idea is, in the era of a flood of information and advertising, advertising is warfare to get attention from the audience. Their attention is rare and valuable. So according to Simon.

Al Ries and Jack Trout continue on Simon’s thoughts, offering positioning strategies seizing the viewer’s mind. Consumers recall about 7 brands even less in one category. Small and medium-sized entrepreneurs have the opportunity to grab attention if the product is imaged exclusively for the needs of special market segments.

For example like this. Players and brands of soap are numerous. To capture market attention, Dove does not compete in the soap category, but makes a new category, not soap but a moisturizer, although its function and shape are like soap. The purpose of this category is to win the attention of the viewers.

Jack Trout inspires the advertising competition to not only compete on products, prices, packing, but compete in other categories, eg specifically designed for certain types of groups, specific characters, a certain age, gender, certain level of education, certain hobbies and so on. Soap is also divided into several categories, beauty soap, health soap, children’s soap, acne prevention soap, liquid soap, soap durable, and so on.

High Mass Consumption  (1981-1990)

In this era, in America, people love to spend money to look cool by shopping. Body care and beauty products are very popular at the time.

Probably tempted by a growing market cake, there was a looser regulation of advertising.  This triggers infomercials, which are television programs similar to other television show, but actually advertisements. The form can be a talk show, product demo, which is guided by the artist or person who is considered to know. Advertising time is much longer.  This is played important role in the history of advertising.

Integrated Marketing Era  (1991-2000)

The growing number of products and market competition, making advertisers aware that advertising alone is not enough to drive sales.

The business of sustainable sales requires an integrated effort: 4P: Products (Promotion), Place (location), Price (price). It was the old idea of Jerome McCarthy, an idea that emerged in the 1960s, but began to become popular during that decade, as competition grew louder.

In Indonesia, Hermawan Kertajaya formulates a variety of marketing theories into a comprehensive model that involves various elements, including employees, investors, consumers, technology, management, and so forth.

history of advertising integrated marketing

Hermawan Kertajaya combines various kinds of theory into one integrated concept system.

In this decade more consumers have the option of rejecting television advertising, with the Tivo program. Tivo’s a TV show recorder. With the Tivo, they can choose the preferred event, including through advertising.

In this decade the internet became popular. Netscape browser program created (1993) provides the convenience of surfing the internet. Search engines like yahoo, AltaVista, Infoseek, the Web sprung up and linked to search engines or search engines. Consumers are increasingly in control of selecting information of interest.
In this era of advertising, among others, make the web and do search engine optimization (search engine optimization).

At the end of this decade (2000), Google launched Google Adwords that featured ads in the search engines as well as the webs contained therein. Its ads are shaped like news, resembling an article. And the contents of the ad also adjust to the keywords sought by the audience.

In this decade began many people who have mobile phones. So advertisers take this opportunity to promote sales over the phone.
Social Media Era (2001-2010).

In this decade, spam evolved in the web and email. Promotional phones are also getting more and more So as to encourage the emergence of Do Not Call institutions that regulate the use of a telephone for promotion as well as spam email.

In this decade social media emerged in favor of people, offering a more immediate two-way interaction. In social media, intense promotion is also done by advertisers, but some get resistance from users. Facebook itself tends to reduce unilateral promotion.

Google and Facebook provide advertising opportunities that match the interests of the audience. They provide algorithms for detecting audience interest and delivering advertisements to the interests of the audience.
In addition to the opportunities given by facebook and google, advertisers attract attention by creating articles, images, and videos that seem neutral, in the end, there is a sponsored message.

Because the interaction is immediate, advertisers are increasingly being demanded to have a concern for consumers’ feelings and lives. They form and deliver the things they need for free. As the bonds get stronger, advertisers insert them with sponsored messages relevant to their needs. Fisher creates fishing groups, marketing software vendors create internet marketers groups that guide young people to do business online.

Advertising in this era uses social media algorithms and search engines to find the right people. In addition, by forming a community to build closeness.  This is playing important role in the history of advertising.

Customer Centered Era 2011-2018

Social media, search engines, and advertising are increasingly likely to be more customer-oriented. Facebook is increasingly reducing the commercial post portion of Fanpages and emphasizing friendship. Google tailors ads to audience behavior in browsers and search engines. The ads displayed are relevant to the interests of the audience. Ads that appear not only depends on the articles we just open, like Google do before, but in accordance with the interest of viewers who are tracked in the browser and search engines.

In this situation, the advertiser first understands the customer in more detail. This makes it possible in the present era than the previous era. Advertisers are trying to understand the tasks, pain, and enjoyment that customers feel and experience. Furthermore, advertisers design their products according to their specifications.

Not enough with that, advertisers provide free content support first, from storytelling, articles, videos, lessons, training, entertainment and so on. They also pay attention to the customers. Thus, advertisers get their blessings when giving ads to them. Seth Godin said this trend as permission marketing. This is playing important role in the history of advertising.