Disruption and Marketing Strategy

With the ability to track market responses, marketing metrics develop. In the era of mass media, the marketing metrics included the number of viewers, the number of sales, and the rate of repurchase. Now in interactive media, new metrics appear, namely: the number of viewers who pay attention, the number of positive responses, the number of people who see ad impressions in seconds, the number of people who click the link, the number of people who send private messages, the number of people who click add to cart.

The difference is again with advertising in the mass media; advertising in the media now not only displays the number of people, but also can collect who they are in aggregate. Technically, information technology makes it possible to detect precisely the names and emails of viewers who react to advertisements. But if it is done, people will feel their privacy disturbed. Because of that, Facebook only provides aggregate data, about the number, location, age, occupation, but no email and name information. Thus, advertising on interactive media has more benefits, namely the collection of interested market segment data. Marketers can do funneling, which is gradually inviting people to stretch out from not knowing, knowing, liking, interest and buying.

Brands in the era of interactive media have other meanings with brands in the era of mass media. In the era of mass media, brands were built with unidirectional advertising, product and service performance. While in interactive media where communication takes place from many people to many people, the brand is formed from companies and among customers and markets. The market not only gets information from the company but also obtains information from fellow customers. Consumers can respond to products without needing permission from the company, and other consumers immediately read them. It create corporate image with more active consumer involvement. Opportunities also open, if the company succeeds in making consumers happy, then consumers willingly provide recommendations and good reviews to others.

The process of the brand changes. Previously, the company made products and brand associations, compiled evidence, conveyed to viewers. Then the following changes occur, the company studies the audience and makes a temporary hypothesis / guess about what is needed. The company makes the products needed and spreads them on the web and social media. Reactions or responses of market targets are considered and studied, both directly and with the help of artificial intelligence. The reaction of the target market becomes material to make new guesses about what is needed. So on.

That is not the only way to build brands in interactive media. There are other ways to weigh market needs for transparency. There is a trend; the market wants companies not to be merely economic animals that are looking for profit. They want to put the company as part of a big vision, for example about the environment, about fighting the status quo, about caring for future generations, about caring for the rights of women, caring for the poor. Apple computer companies, cosmetics companies are included in the example of companies that use this route. Apple emphasizes its attitude that wants to be different from previous ways. Apple emphasizes the company’s character first, the character that makes people interested. The motto, think different, is not about product quality, but about the attitude that challenges the status quo. With this approach, he can gain market sympathy through interactive media.

Background of Marketing Ideas

The marketing concept is thought out and designed to help businesses make efficiency and effectiveness in sustainable sales. Sometimes old concepts are not enough to deal with dynamic new business challenges, so marketing thinkers offer new breakthroughs to overcome deadlock. The breakthrough is not necessarily entirely new, it is often the development and redefinition, and the addition of new elements. So that the functions of the old concepts are still relevant. That is why, this chapter wants to discuss the concept of the millennium era while keeping in mind the old concepts that preceded it.

Marketing is a growing science and method. This science is growing rapidly in America, so it’s worth considering the development of marketing in America.

Manufacturers’ efforts to satisfy consumer needs are not new symptoms. Manufacturers of handicraft items open intensive personal communication with customers. Artisans get input to produce products that satisfy customers. Artisans know that in addition to production, paying attention to customers is important. The promotion was done by making a signboard on the production house and word of mouth.

Things changed after the industrial revolution of 1760-1830 in England (Geoff Lancaster, Paul Reynolds –Marketing Made Simple). In the industrial revolution, production is held in bulk. The results of mass products are not only sold to the local area, but sold out of town even to the national territory. Manufacturers no longer know consumers personally. Promotion is carried out through mass media.

The task of promotion is to compile announcements in magazines and newspapers. Tight competition makes advertisers compete in making compelling headlines, followed by big promises. Such a method will eventually make the market segment do not believe in the big promise of advertising in the mass media, advertisers make innovations by offering benefits, not features. Increasingly intense competition has led to the use of sexual attraction in advertising and product packaging improvements.

Advertising competition in the mass media is getting tighter, Competition is not only in the face of accuracy offering benefits that best suit consumers, but by doing, not just one, but a series of advertisements that are published continuously in the mass media. Ads are not designed for one time, but repeatedly in a series of campaigns.

Secret Behind Efficient Marketing Program

The most popular concept of marketing is indeed the marketing mix or marketing mix, but that leaves a problem. The marketing mix does not tell, which products are easily accepted by the market and those that are not, which locations are close to markets that are thirsty for your product and which are not, which products and locations are tightly competitive and which are not. That question does not need to be raised when business competition is not tight. But when competition suppresses the business situation, that’s an important question to answer.

To answer that problem, segmentation and targeting of the market will help. Segmentation is work at the strategy level, or finding easy ways in marketing practices in the midst of competition and various tastes, while the marketing mix is ​​work at the level of tactics.

According to Cano and Schwatzkopt, the concept of market segmentation and positioning has been inherent in marketing practices since 1920, but no one has expressed it in writing. It was only in 1969, Al Ries and Jack Trout compiled the brand positioning in the article Industrial Marketing. Segmentation itself is inherent in the formulation of positioning.

Segmentation is dividing the market into smaller groups. The division is generally based on geographic location, demographic characteristics, psychography and behavior. It can also be based on consumer groups or businesses that need raw materials. Why do division or grouping? The population in a location is not the same as their needs, interests and requests. But also not at all different from each other. Differences in needs and interests can be classified in the form of market segments or smaller groups that have similar needs, interests and requests.

Segmentation helps to choose market segments. After classifying the market into segments, marketers evaluate, which segment is most suitable for their business. Most suitable means that marketers are able to serve them, able to compete with other businesses,

Although marketing is often identified with the marketing mix, segmentation and target setting provide the following benefits.

• Segmentation and targeting will make the work of the marketing mix more focused and efficient or low-cost. By determining specific market segment targets, Imagine marketers rely solely on the marketing mix in their marketing programs. He will have difficulty determining the exact location and where the right communication channel is. Marketing costs are very large because the choice of prospects is very large.

• Determination of target markets helps marketers gain competitive advantage. If some rice marketers compete in the same market based on geography, competition will be tight, competition will be superior in quality, price and location. By understanding segmentation, new marketers can avoid intense competition. If there is one marketer who is segmenting and determining specific target markets for their services, for example a group of organic rice enthusiasts, then he provides organic rice, then he has a competitive advantage. For organic rice enthusiasts, organic rice is preferred to general rice. Price is not a consideration.

• Segmentation and targeting of markets helps find the best market segments / groups. Like entering a buffet dining room that provides a lot of choices, to get the best choice, before taking food you should see all the available menus. After that, it determines which menu is the best. The best menu is a food menu that does not interfere with their health and also according to their tastes. Segmentation is like observing all the available menus, so from that information, marketers can decide which market segments are most in need and like the products offered. Besides thinking like that, segmentation can also find which segments have high purchasing power and what they need. Where are the segments that marketers are able to compete.

• Reaching a market segment, for example the geography segment, requires different costs between one segment and another. The difference in costs can be promotional costs and shipping costs.

Segmentation in Millenium Era

Is segmentation and targeting still relevant in the millennium? Philip Kotler, Hermawan Kertajaya, and Iwan Setiawan wrote this in the Marketing 3.0 book, that in the Information Technology era where consumers connect with each other more often, have different concepts. Not segmentation, targeting and positioning, but communitization or targeting in the community. Marketers market their products to more and more communities.

Even so Kotler’s opinion, if compared between segmentation and communitization, communitization contains segmentation and targeting as well. Segmentation divides the market into small segments, and each segment has the same characteristics of interest, even though they are not connected. Whereas communitization is a group of consumers or just consider segments that are connected to each other. As a community, they serve one another among them. According to Godin, the community does not serve business marketers. Even so, communitization is one type of market segment based on likeness. Even the segment has formed coordination with each other.

Thus segmentation and targeting are still important in the millennium era. When business competition is getting tougher, in addition to trying to make better and more beneficial products, it also strives to enter different market segments that are not affordable to competitors or not too tight competition.

Kotler, Hermawan and Iwan in Marketing 4.0 explained again, the difference between STP (segmentation, targeting and positioning) with the community. The community is a segment, or a small group in the market. But the difference is, because they are connected, they reject marketing interruptions, spam, and irrelevant advertisements. STP still considers the segment a passive target to accept persuasion, while communitization is an active group that has their own will, serving each other between them. The best approach is to observe their development and participate in serving the community members.

It’s true that Kotler and his friends say they reject marketing interruptions, spam and irrelevant advertisements. Even so relevant ads are still possible. Examples of advertising on Google Adwords and Facebook Ads. Ads on Google Adwords allow people to place ads that are relevant to the keywords that someone is looking for. The keyword reflects interest. Advertising on a keyword means an advertisement for a group of people who are expected to match their interests. For example a hotel ad in Karimun Java, can be displayed for people who write keywords: cheap hotel Karimun Java, tourism Karimun Java, the best hotel Karimun Java. Ads on facebook ads can also target groups that have particular interests. Facebook has artificial intelligence that allows it to detect someone’s interest, then Facebook lists the interests of Facebook users. Thus, advertising on Facebook and Google seeks to bring together advertisements with relevant target markets and avoid irrelevant target markets.