Tuesday, November 20, 2007

Howard Vs Rudd

It is a campaign period in Australia. Soon the Prime Minister election will be held. It has been an interesting thing for me to be able to witness it. I decided to share about this because I believe that campaign means marketing. I believe that most of the members are familiar with the campaign. I can still remember the first we had approximately 50 different parties at the beginning of reformation era.

There are only two major parties in Australia, Labour and Liberal. The current PM, John Howard, is from Liberal party and also one of the candidates. He is the second longest serving Australian Prime Minister. The other contender comes from Labour party is Kevin Rudd. In this sharing I do not intend to express my political opinion since my objective is purely to discuss the unique marketing phenomenon during the campaign.

The unique issue about their campaign, of course we could not see this in Indonesia, is their marketing technique in expressing mockery and ridicule of the other party. Instead to only focus on their strengths, they also focus on raising the disadvantages from their opponent. They attack their opponent from every angle of their opponent, such as future policies, the ministry candidates, and the mistake of the leader in open communication to public.

I find this marketing very powerful since the public could see clearly both advantages and disadvantages of their prime minister candidates. Probably it still would take 100 years for Indonesia to apply this method since it might be considered to be morally inappropriate. However, let us just share about what you think about this phenomenon. What is the electoral campaign like in your country? How do they conduct the marketing?

David Herlambang
MarketingFirst

Monday, November 12, 2007

Support My Movember

Hi All,

During Movember (the month formerly known as November) I'll be growin a Mo. That's right I'm bringing the Mo back because I'm passionate about changing men's health and the fight against male depression and prostate cancer. Why...


Depression affects 1 in 6 men...Most don't seek help. Untreated depression is a leading risk factor for suicide.
Last year in Australia 18,700 men were diagnosed with prostate cancer and more than 2,900 died of prostate cancer - equivalent to the number of women who die from breast cancer annually.
Men are far less healthy than women. The average life expectancy of males is 5 years less than females.
To sponsor my Mo please go to http://www.movember.com/au/donate/, enter my registration number which is 125690 and your credit card details. Or you can sponsor me by cheque made payable to the "Movember Foundation" clearly marking the donation as being for my Registration Number: 125690. Please mail cheques to: PO Box 292, Prahran VIC 3181. All donations over $2 are tax deductible.

The money raised by Movember is donated to the Prostate Cancer Foundation of Australia and beyondblue - the national depression initiative, which will use the funds to create awareness, fund research and increase support networks for those men who suffer from prostate cancer and male depression.

For those that have supported Movember in previous years you can be very proud of the impact it has had and can check out the detail at: Fundraising Outcomes.

Movember culminates at the end of the month at the Gala Partés. These glamorous and groomed events will see Tom Selleck and Borat look-a-likes battle it out for their chance to take home the prestigious Man of Movember title. If you would like to be part of this great night you'll need to purchase a Gala Parté ticket .


Thanks for your support

David

More info is available at www.movember.com.

Movember is proudly grown by Commonwealth Bank, Holden, Schick and VB.

Movember is proud partners with the Prostate Cancer Foundation of Australia and beyondblue - the national depression initiative.

Tuesday, October 16, 2007

Inconsistency in marketing…It is happening to me =)

Good day everyone!! It has been a while since the last time I put my latest sharing. Is it laziness, busyness, or sickness that has been keeping me away from writing? Well to be honest the answer is the combination of all three of those. It all started with busyness from my new commitment with the new company that I work with. However, I should have not broken my commitment as a marketer to keep sharing. Therefore the laziness also got into my brain and took over the whole body not to think and write. Just when I thought it could not get any worse, the sickness came along. Yes!! That is right…I had too much fun on the last long weekend and therefore I had to experience a very bad flu for the last two weeks.
I am actually still in the office with some spare time. Therefore, it is a good idea to keep my brain exercised with marketing concept or otherwise there will always be more reasons in the future that keep me away from sharing. Let us elaborate more the phenomenon that I just experienced. I would like to call it “Inconsistency”. I think this is a cancer in marketing.

Since my interest in marketing was triggered I noted that marketing requires consistency. The sustainable marketing does not depend on a single incident. Let us look at the obvious example. I am sure that all of you acknowledge the American Idol, Australian Idol, Indonesian Idol, and the other Idol series. Those series have managed to capture a lot of great talents from all around the world. Each and every season always manage to bring at least one person under the spotlight. However, where are they now? Only a few of them that managed to continue their popularity.

Consistency is a simplest and yet I consider it as the hardest marketing idea. Jay Conrad Levinson, the author of Guerrilla Marketing stated that “You should know that a mediocre marketing program with commitment will always prove more profitable than a brilliant marketing program without commitment. Commitment makes it happen”. I suppose nothing comes easy in life.

A couple of days ago I read an article that stated Wal-Mart has lost its consistency as the world’s strongest retailer. They could no longer provide the complete full range of products as they did years ago. Their competitors seem to be able to create deals with the producers and hence outweigh Wal-Mart. This seems like an unimportant measure however the marketing jungle see this as a huge drawback.

Only through consistency the level of your experience and credentials could be enhanced in a particular area. You will begin to gain some traction, to know people in the relevant area and to be known, and potentially to acquire a reputation as an expert. Each of these attributes requires a sustained effort.

Since I am also still learning to be a better marketer and a better person, I would like to hear suggestions from other members on how to keep our motivation in life.

David Herlambang
MarketingFirst

Monday, September 17, 2007

Add More Reasons to Your Product for People to Buy

In the Sydney Central Business District (CBD) there are a lot of restaurants. They are not necessarily good restaurants however they are always packed and very busy every lunch time. They are quite expensive from the price point of view. Moreover, there are a lot of café in every street corner, building, and shopping mall in the CBD. Likewise, they are always very busy every morning and not all of them serve the high quality coffee. Why is this happening?

Another important reason for the costumers to buy their foods and coffee probably is the convenient location that they offer. As my friend, Michael Raharja, stated in his earlier sharing there are a lot of factors that affect the costumers’ decision in buying a product. Surely quality is not the only driving force to win the marketing war.

The former McDonald’s boss, Ray Kroc, in his seminar once asked to the audience “Who can make better burger than McDonald’s?” Expectedly, there were more than a dozen people raised their hands. He then asked “Why can’t you sell more burgers than we do?” This shows that marketing war is more complicated than just the product itself. However, marketing without promising product would also be a dangerous situation.

Approximately a year ago, an Australian supermarket called Woolworths decided to create a charity day which intended to give all the profit generated on that particular day for charity purposes. The sales went crazy on that particular day and one of the employees told me that it was the busiest day after two years of experience to work in the store. Not just a good PR strategy, this act also added one more reason to shop at Woolworths on the top of the convenience and low price which is to do something good.

McDonald’s could conquer the marketing war because of the vast reasons that they have created for people to buy their burgers. They have convenience, reasonable taste, goodwill values with their charity, wide selections, and it is even getting healthier in Australia. Therefore, they manage to answer the hesitation of Australians to buy their products the health concern.

Marketing is a beautiful concept since it could be implemented into our daily routine regardless the business level we are involved in. As a person we are marketers. Warren Buffett once said that “If you have a chance to invest in 10% of one of your colleagues’ life, which person will you pick? I am sure that you will not choose a person based only his ingenuity. I am sure you would rather choose a person with a good heart, great vision, positive attitude, and of course great intelligence”. At the end of the day it is good to have these qualities as a person.

Do you agree with me?

David Herlambang

MarketingFirst

Monday, September 3, 2007

Indonesia oh Indonesia

On September, 08 – 10, 2007 there will be a great event for Indonesian students who study overseas. The International Conference of the Indonesian Students will be held in Sydney. Hopefully the president would be able to attend this conference after the APEC meeting. As a graduated student in Australia, and also as an Indonesian, I think this is important for me to promote this event through this sharing.

The topic that will be discussed in the conference is “Pulang atau mengabdi dari jauh” in English “Come home to Indonesia or devote from overseas”. As one of the Indonesian students who studied overseas, I also have the dilemma whether should or should I not come back to Indonesia as soon as I finished my university. I am sure that all Indonesian students that study overseas would have this dilemma of the century.

The majority of the students that I have met and talked to said that they will stay overseas for a couple of years in order to gain the valuable experience and the financial stability, before they come back to Indonesia. What happens to Indonesia? Even their own students do not believe that their home country could offer them the valuable experience and financial stability.

From the population point of view, there are 200 million people; therefore this is ten times the market size in Australia. With the great land, we could grow most of the plants in Indonesia. With the great panoramic view, we can be one of the best tourist destinations in the world. With the great natural resources, we should be one of the richest countries in the world. More importantly, with a lot of ingenious Indonesia students, we should be one of the leading countries.

From the marketing point of view, there should be a lot of great stories to be told to the world about Indonesia, especially with those qualities lined up. However, there is always and only bad publicity that I heard about Indonesia. Seth Godin stated that a great idea sometimes stays in dormant unless it could be marketed properly. In the marketing war, the winner is the person who can spread their ideas, regardless what the idea is.

Godin also stated that in 1912, Otto Rohwedder invented a slicing bread machine. However, he concentrated only to the idea (patent, production issues, etc) instead of the marketing and ended up a failure. There is no one cared about the sliced bread until seventeen years later, a company called Wonder White, marketed slice bread in order to spread the ideas.

Is Indonesia similar with the sliced bread? Why is it happening? As an Indonesian of course I love my country. However, how can we be expected to come home if there is no guarantee from the country for our own life security and stability? How can Indonesia position itself in the marketing war against the other countries?

Ideas, opinions, and questions will be greatly appreciated.

David Herlambang
MarketingFirst

Saturday, August 25, 2007

The "X" Factor in Marketing

I have been living in a suburb called Kingsford since the first time I came to Australia. This is not the most beautiful suburb in Sydney however as a student I found it very convenient to live in Kingsford. It is only ten minutes away from the University of New South Wales (UNSW). Therefore, this suburb is packed by a lot of different international restaurants and students.

In Australia it is very common to see local bars and pubs in each and every suburb. Australians are very familiar with alcoholic beverages, particularly beer. Therefore, drinking beer with the companion of a couple of friends will be a regular routine in Australia.

There is an interesting phenomenon of a local bar called Churchill’s bar. I assume this bar has been established for a substantial period of time. Therefore, it should have a strong locality exposure and brand in the area. However, the reality showed an interesting contradictory. Approximately four years ago this bar was practically sleeping even during the weekends. The locals somehow prefer to go to the city and enjoy the better designed and more luxurious bars.

Until approximately June 2006, when the last world cup was on, this bar started to wake up from the long time sleep. At the same time Australia went into the world cup for the first time in the last 32 years. Therefore, a lot of Australians were involved in supporting their beloved country in the world cup. The bar was practically crowded from midnight until 7 o’clock in the morning.

After the world cup, the bar started to be diligent in advertising itself in the local newspaper and create a lot of different events in order to attract the locals. Moreover, approximately in the beginning of June 2007 this bar renovated the venue and becomes even more attractive and convenient. Somehow it is always more crowded than some years ago every time I pass the bar.

I realize this example exhibits the luck factor in marketing which sometimes is equally important in business. However, it is the management ability to sustain the good time after the luck is also important in order to wake the sleeping brand up. As I stated before the suburb is packed with a lot of international residents. The bar even advertised in the international magazines in different languages. They start to realize that their market is no longer limited to the local Australians.

A friend of mine told me that success is a combination of luck, courage in taking risk, and the great level of competency. Do you believe it? Let us discuss this “X” factor in marketing.

MarketingFirst

David Herlambang

Saturday, August 18, 2007

The Media Power Revisited

Is there anyone in the forum who trade or invest in the share market? If the answer is yes, how many of you have sold your stock in the last one month? How many of you that cannot get your eyes off of the finance news in the last a couple of weeks? How many of you have told your colleagues, relatives, and family about the share market activity that could be considered as a bumpy market?

In Australia, the All Ordinaries index has plummeted 10% within 19 days. The ugly movement of the global share market began approximately five weeks ago. There are a lot of commentaries in the media, both the negatives and the positives in regards to the current market condition. Somehow these commentaries really affect the investors’ emotion which eventually could alter their investment decisions.

I am here not to share the wisdom of the stock market however I would like to point out how the media really could affect the opinions within the society towards any particular issue. I also stated how Jakarta Undercover became such a phenomenon in Indonesia. The uniqueness of the book and the creativity of Moammar Emka in finding the right niche in the market enhance the media publicity. A lot of reviews by the independent newspaper were issued and a lot of testimonials from the influential people were published. These factors surely affect the marketing strategy of the book.

The flow of information becomes even faster in this century with the assistance of the internet. A century ago it might take a couple of days for the Australian investors to note the important issues that spread in Wall Street. However, it only takes probably a minute to read and understand, or even not to understand, the important Wall Street issues. Consequently, a new investment or trading pattern increases the volatility in the share market.

Is there anyone in the forum that has seen the X rated Paris Hilton movie? In my personal point of view this is the only reason why she becomes so famous. Even her father, the founder of the Hilton Empire, stated that it was a greatest marketing that cannot be replaced even by a billion dollar. This is an example of another media power.

Could anyone mention their experience or sharing in accordance to the media power?

Thursday, August 9, 2007

The Problematic Truth

My mama always said life was like a box of chocolates. You never know what you're gonna getForest Gump (Tom Hanks)

The Interesting quote above from the movie Forrest Gump somehow is very true in this life. I would like to share a little about my experience in business and life. This sharing is a continuation of my previous sharing “The Road to Success is Always under Construction”.

As I stated before that we started the new Klick N Save on January 2007. Basically we concentrated on the nursery products with an online marketing approach. The whole team began the journey with full of passion. Let me show the deepest appreciation to the great team, and I feel so lucky to have a chance to be one of them.

However, there are a lot of different problems not only from the business point of view. Different problems also came from the personal life of the members. One of them had to go back to Indonesia due to the sickness of the family member. The other had to go to China to pursue his education. I personally experienced a very bad mental breakdown approximately a couple of months ago due to the financial situation, pressures from the business, and of course the difficulties from the transition period since I just finished my university.

With so many problems we decided to stop the online business operation at the end of September 2007. I will continue the security analysis division to live my dream. Probably I am the most stupid person in the world due to the fact that I still want to keep the company and try to work on it. I really cannot imagine where I will bring the company and how I will drive the company. I just try to concentrate to make up the pieces of the puzzle and hopefully I can create a complete picture in the future. I know there will be more challenges in the future so please wish me luck!! Honestly, I feel so sad about the situation.

Hopefully this little piece of experience would be useful to the fellow readers.

David Herlambang
MarketingFirst

Thursday, August 2, 2007

Open For Changes…Anyone??

I had a soft skill training which took the whole of my Thursday. This soft skill training focused on the topic understanding yourself and others. In this training I really see how people are so different from every angle. These different characters could also be influenced by different roles, background, values, and reasons from the inside of the person. Therefore, the behavior that we see is just a small exhibit from the whole picture.

The most interesting part of the discussion is the fact that different characters have different tendency towards the changes in life aspects. Some people enjoy changes and see it as innovative and interesting steps in life. On the other hand, others might hate changes badly.

Marketing involves the whole aspects within the society therefore changes could not be avoided. According to Philip Fisher, a great investment opportunity comes from a company which realizes that a success from a single product is not an eternity. The management should realize that competitors will attack the market from different angles therefore it will change the customer and the society behaviors. The management has to understand that almost all success will fade if no further innovation, improvement, and probably extension to be implemented.

Approximately, two months ago I received a bad news from my family about the failure of my uncle in his optometry business. A decade ago his business was going very well and everything seemed to be very perfect. The Asian crisis, the occurrence of a lot of new and attractive shopping malls, the existence of new and different segmentations within the market, and a new costumer spending patterns turned the situation upside down. This is another sad story that I need to share to you.

Wednesday, July 18, 2007

Let's Talk About Reputation

This is my second week with the new company. There are a lot of great moments in terms of self development and new experiences. I have a chance to work with some great engineers in Australia. I could be exposed to a lot of different great and important projects.

Every morning I and two of my seniors always go down to a café and have a bit of coffee to boost our day. We basically just have a good chat about every single issue that we meet in the day before. They have been in the industry for at least ten years. As one of the youngest in the company I always like to listen to my seniors experience and get to know them better. Therefore, I always try my best to be able to attend all the activities in the company.

This morning in the café one of my seniors emphasized how important reputation is in the professional world. He told me a lot of great stories in regards to the reputation of the outstanding young engineers who have accomplished a lot of great achievements within the company. He also pointed the importance of our reputation not just according to the managers but also according to the clients. Eventually, the clients would be more than happy to send the recommendation letter in regards to our promotion to our managers if we have a good relationship with them.

Good reputation of us among our colleagues is also important. There is no point to be very successful, however being hated by a lot of our colleagues. Therefore, it is very important to have a good reputation in any respect.

How can we correlate reputation with marketing? I believe that a good reputation would be the proof of the true quality. Good quality would eventually lead to the good customer experience. It takes more than just mere products and services to beat the marketing war. The great customers’ experience is a necessity in marketing. Look at Mr, Hermawan Kartajaya with his reputation as a marketing guru!! His reputation does a great deal of marketing for himself and his company.

We live in the information age where society’s perception could be easily changed by a lot of factors. Therefore, reputation in marketing would be very useful.

Welcome to the "Reputation Era"

David Herlambang
MarketingFirst

Wednesday, July 11, 2007

People, Performance, and Results

Approximately a few weeks ago I received an awakening call. This call stated that I am accepted by a great company, Kellogg Brown & Root, to fill in one of their graduate positions. This company is a multinational company in project management industry. The company is actually one of the leaders in engineering multi disciplinary consulting industry.

I just started the employment on Monday, July, 09, 2007. This is actually my first experience in the industry. There are a lot of exciting projects to be completed, ranging from small into humongous financed projects. Their completed projects surely have formed the history of our global society. Therefore, it is such an honor to be invited to actually join the group.

However I found something which is more interesting than the company’s history and the projects, which is its marketing strategy. As an engineer, the company really treats me as an apprentice to be educated, trained, and prepared for their future leaders. There are a lot of development programs that I will be enrolled by the company. Moreover, I will be working closely with my seniors in different projects in order to provide with enough exposure within the industry. They encourage me to set a goal and career objectives, therefore the future development will be easier for me to be obtained.

I really find that this company has a great people orientation in delivering great performance and results. In my previous sharing, I asked how professional companies market themselves. I think I have found one of the answers. Without the proper people, a system will be redundant. Marketing is all about people since a brand is just a brand, hence the people behind the brand who actually create the image.

I have never worked as a professional in the other countries. Therefore, it would be greatly appreciated to hear about your career experience in any company. Do they focus on the people? Do they provide great trainings to their graduates? What are the other marketing strategies that they have?

Opinions, questions, and comments are greatly appreciated.

David Herlambang

MarketingFirst

Wednesday, July 4, 2007

The Shrinking Universe

Have you ever shopped online? Have you read online news? Have you tried to invest some of your money in the other country? Of course all of you have communicated through email. In fact this sharing is being read by you wherever you are, even though I am sitting in front of my computer in Sydney Australia. These situations probably were not possible some decades ago.

A couple of decades ago, it took us a long period of time to communicate with our relatives in another part of the world. Nowadays, all you have to do is log in to your windows messenger and do an online chat with them. It was impossible to order a bunch of flower from London to our loved ones in Jakarta. Nowadays, some online florists could even reach you wherever you are. It was a troublesome to make a payment without cash. Nowadays, all you have to bring is your credit card and you could easily access your money practically everywhere. Nowadays, you can find all the international brands (McDonald’s, Burger King, Starbucks, Carrefour, etc. in Jakarta. The more I think about it, the more I am amazed by this phenomenon. I call this phenomenon a shrinking universe.

This phenomenon also affects the whole business atmosphere. In marketing this phenomenon somehow increases the competition level within the market. The local giants can no longer claim its country as their market. The occurrence of Carrefour surely affects the Hero Supermarket business in Indonesia. Gramedia bookstore is facing both international online and offline competitors within Indonesia (QB Bookstore and Amazaon.com). Moreover, the local professionals are also threatened by the expatriates in the job markets.

Another change in marketing due to the shrinking universe is the existence of the horizontal marketing. Initially marketing was conducted vertically from the company to the customers. Vertical marketing means educating the customers via advertisements. The shrinking universe summons the existence of blogs, online community centers, and forums. These mediums create the possibility to accelerate new information to percolate throughout the society. They also create the freedom to the society to voice and communicate their opinions easily. Therefore, the engagement of marketing through these mediums becomes more and more important.

Are you an entrepreneur? Are you a professional? Or are you a student? What do you think of the shrinking universe phenomenon from your profession point of view? What are the disadvantages and the advantages? Feel free to give your opinions!!

David Herlambang

MarketingFirst

Wednesday, June 27, 2007

If there is a gap in the market…Is there any market in the gap?

I have stated for a couple of times that I am running my own company which is currently evolving to two different business units. Since the establishment, one of the partners has been willing to volunteer to let his house to be our head quarter. The house is very big and we could literally combine both the warehouse and the office together. I have told a story on how our emerging company is still facing a lot of problems to be solved. It starts from the diminishing sales, crowded competition, and the progress of business networking is also a tricky issue. It all does not end there!!

Approximately a month ago my partner was noticed by the owner of the house that it will be sold in the near future (my partner rents the house). It means we have to move our office and warehouse immediately. It does not sound very exciting, does it? Our business is not strong enough to rent a warehouse. Firstly, it is expensive and secondly, our items are just not enough to fully utilize the space of the warehouse.

In Australia, and probably in the other countries such as Singapore, Hong Kong, United States, and United Kingdom there are a unique business which is called self storage. The basic idea was developed from the fact that people often do not want to throw their items even they are not needed anymore. I am no longer using this item, but I might need it later (sounds familiar??). It often happens that we feel that our house is no longer convenient and not big enough for our items. Hence, self storage basically provides us space to store our items.

The typical self storage is a very huge warehouse and a lot of cubicles are set up in order to create a lot of storage rooms. The size varies from very small into a 40 feet container. This idea really answers the needs of the society. With the proper marketing, the society being more and more educated about the importance of self storage. It now evolves into wine storages, and even a lot of businesses use them as their warehouse (including us hehehe).

A great marketer told me that when there is a gap in the market, it does not always mean that there is market in the gap. I have seen a lot of unique businesses that did not excel in the market (could you name the examples?). It takes more than mere market research to actually understand the market. Sometimes we have to educate the market in order to create the sense of necessity of our product or service. I am also still learning these marketing principles and would like to hear more sharing in regards to this issue.

What about your business? Does it fill the gap within the market? What marketing strategy did you introduce in order to promote the unique positioning of your business? How did you determine the niche market?

Comments, opinions, and questions are greatly appreciated

David Herlambang

MarketingFirst

Thursday, June 21, 2007

Another Form of the Good Will Marketing

In January 2007, I wrote a sharing with a title towards the good will marketing which combines the marketing and public relation strategy. This sharing outlines how to be a good company within the society by being a philanthropist and how the good will actually increases the awareness of the society towards the company. Moreover, this practice will allow us to give back to our society since we are living in the society.

I March 2007, I revisited the good will marketing with another approach. I believe that all manufacturers must have a good will towards their distributors and retailers. They always try to keep the good profit margin by creating the healthy competition in the market. They would not allow people that will sell at discounted price to enter the market easily since this would kill the rest of the network. Moreover, they would also kill the positioning and the branding of the products.

For the third time I would like to point out the importance of the good will marketing within the business. Have you heard the name Enron? Have you heard the name Arthur Andersen? Hermawan Kartajaya stated that business has to be conducted in honesty in order to be sustainable. I personally believe that true honesty, good wills, and great management skills that would create a sustainable business.

Enron employed around 21,000 people (McLean & Elkind, 2003) and was one of the world's leading electricity, natural gas, pulp and paper, and communications companies, with claimed revenues of $111 billion in 2000. Fortune named Enron "America's Most Innovative Company" for six consecutive years. It achieved infamy at the end of 2001, when it was revealed that the reported financial condition was sustained mostly by institutionalized, systematic, and creatively planned accounting fraud. Enron has since become a popular symbol of willful corporate fraud and corruption.

Arthur Andersen was once one of the so-called "Big Five" accounting firms (the other four are PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG), performing auditing, tax, and consulting services for large corporations. In 2002 the firm voluntarily surrendered its licenses to practice as Certified Public Accountants in the U.S. pending the result of prosecution by the Department of Justice over the firm's handling of the auditing of Enron, the energy corporation.

It is so amazing how giant companies like Enron and Arthur Andersen abruptly disappeared and bankrupt because of merely not being honest to the public. This example really shows how a leader in one situation does not mean an eternal leader. Their bankruptcies really affect the global business climate. After the September, 11 attack the New York Stock Exchange (NYSE) suffered bear market for a month. However, when Enron case happened it suffered a three months bear market. How many people being redundant after the falling for these giants? The answer is too sad to be true.

Comments, opinions, and questions are greatly appreciated

David Herlambang
MarketingFirst

Thursday, June 14, 2007

They Call this Customer Service

Australia Post…part of everyday life. That is the slogan of the one and only Australia Post. Australia Post is proudly owned and operated by Australian. However, in the courier industry Australia Post has a lot of rivals from other private companies. Due to the fact that the increase in the competition in the courier industry and to maintain their popularity, for the last couple of months they have heavily advertised themselves to the public through all the media and hopefully the public will become their loyal customers.

In my previous sharing I stated that sometimes marketing takes more than just advertising. I also believe that customer experience is an integral part of marketing. In the current competitive business environment advertising without action means nothing. Massive campaign without strategy and better customer service will only waste your money.

I have an online business. As we know that online and mail order businesses become the main customers for Australia Post. A couple of days ago I went to the post office to dispatch my items. The sign in front of the office said “Operating hours: 11am-7pm”. I was waiting in front of the office at exactly 11am. Finally the gate opened and I directly gave my items to be dispatched. However, the officers told me to come at 11.30am in the future. He told me that they are not set up at 11am. Instead of apologizing for the delay caused, he made me feel guilty that I came at 11am.

I also helped my parents run their own restaurant in Jakarta. We opened at 8am and set everything up of course before 8am. Therefore, we would not disappoint or even told customer to come later if they come at 8am. In business we have to understand that customers have their own time table. What is the point of advertise your company if the only thing that you can give is bad experience. Now, I am more than happy to advertise the badness of Australia Post to the public after the experience.

In my point of view Australia Post has established for ages in Australia. Instead of using massive advertising, they should polish their system. Increase the brand loyalty instead of the brand awareness. I believe that the cost of losing an existing customer is more expensive than acquiring a new one. I am sure that most Australians still use Australia Post service. I think Australia Post should go back to university and study marketing.

Comments, opinions, and questions are more than welcome


David Herlambang

MarketingFirst

Wednesday, June 6, 2007

The Irrelevant Marketing

The existence of music has given a lot of influences to our daily routines since the early age. We probably started to listen to music since we were still in our mother’s womb. As we grow older our taste of music becomes more complicated. We start to recognize different genres of music, such as jazz, classic, rock, pop, RNB, etc. Our taste of music is mostly influenced by our daily habits, environment, friends, and of course our own personality.

The sophistication of our taste of music and the existence of the wide range of music genres create the complicated segmentation within the music entertainment market. With such complication and competition between the musicians, the music industry could be considered as a red ocean market. Moreover, with the huge amount of song traffic in the society it would be very hard for musicians to capture the attention of their target market for a long period of time.

As I explained before, the complication of our music taste increase as we grow older. I personally think that our desire to music could be perceived as one of our needs in life. A kid would be more than enough to be equipped with a pencil and an eraser to go to the kindergarten. However as he grows older and becomes an architect, he probably needs more than a pencil and an eraser. Similarly, as we grow up there are a lot of variables that changes the need of music. We start to understand the lyrics, recognize the tunes, and correlate the songs to our daily routines.

Approximately two decades ago a band called the Wiggles was formed in Australia. Since its formation in 1991, the group has achieved worldwide success with its children's albums, videos, television series and concert appearances. According to Business Review Weekly magazine, The Wiggles were Australia's highest grossing entertainers for the year 2005, earning more than AC/DC and Nicole Kidman combined.

As I stated before that sometimes being simple is the answer. The Wiggles unique positioning in the music industry shows the simplicity of the band. Surely not like adults, the kids’ taste of music is much simpler. They would not care too much on the sophistication of the lyrics, the technique behind the song, or even on how handsome the singers are.

Their combination of happy tunes in their music with funny movements plus the funny characters such as Dorothy the Dinosaur and Henry the octopus somehow becomes unique both from the music and children entertainment point of view. I personally think that the Wiggles created a blue ocean market within the music industry. They created an irrelevant competition within the market. Somehow they do not compete with the Top 40 artists although they are actually in the industry. Moreover, they also do not compete directly with the cartoon characters such as Dora the Explorer, Thomas the Tank Engine, Bob the Builder, etc. With such unique positioning I think there is no where to go but forward for the Wiggles.

Be Irrelevant to win the marketing!!!

David Herlambang
MarketingFirst

Thursday, May 31, 2007

Business Globalization

I was sitting in the car on the highway to meet a business colleague on Wednesday. There are a lot of interesting phenomena that I observed during the trip. These phenomena come from a great burger company, with a big yellow M as their slogan, a funny clown as their character, the one and only McDonald’s. The title of this sharing is business globalization since I think that big businesses somehow become the culture of the global society or even create the new habit of our society.

My old business lecturer once told me that a business would be able to control a country when it becomes too big. Microsoft surely creates new habits for our global society. Imagine if all Microsoft Windows Operating System are stopped in a night. I think the whole planet earth will become even more chaotic than when the Tsunami devastated the Asian countries. In fact, the global economy is actually influenced by these businesses.

Imagine if Coca Cola suddenly disappear from our society. I think a lot of people will be unemployed, the New York Stock Exchange will be suddenly shaken, and all the restaurants on the globe will experience diminishing in their profit. Moreover, all the coca cola fans will become furious.

In the world McDonald’s surely is everywhere. When I was driving on the highway I can clearly see two McDonald’s restaurants situated exactly opposite to each other, one for each different route. It becomes the executive daily habit to grab the McDonald’s meal in the morning since it is simple, easy, and of course fast. On the highway I could also see even the road directory contains McDonald’s sign in it. This really shows how the company affects the Australian government and Australian culture.

Ten years ago I could still live happily without a mobile phones in my pocket. Somehow the world was small enough to get in contact with our friends and family without the mobile phones. However after Nokia introduced their 5110 series to the world, the whole society becomes addicted to mobile phones. I really cannot live without a mobile phone now. Somehow it becomes so troublesome without it.

A simple sharing about business globalization. Do you have another experience that shows how businesses could affect your habit? Please share it to the group
David Herlambang
MarketingFirst

Saturday, May 26, 2007

It's All About People

A couple of weeks ago I asked to the public How the Professional companies market themselves? This question was answered wonderfully. Continuing the story, I managed to go through the second stage of McKinsey's recruitment process. In the second stage I will be required to undergo a problem solving test in an hour. If I could do well in this stage I will face a couple of different interviews before I could get into the company. I think this is a very great and challenging recruitment processes. No wonder they could always find the outstanding individuals to work for them.

As I think about the processes I try to correlate this with marketing. One of the most important elements in marketing is product, and in this situation, their consultancy services. In order to deliver an outstanding product they surely require the right people to build the solution. These people then do the marketing for the company. The results that they deliver to their customers will speak out louder than anything.At the end of the day it is our people that build the company, the system, and the marketing.

In the real life situation we can see how an influence of one great person could alter the final result. Marvin Bower brought McKinsey&Co. up to this level. Our own, Hermawan Kartajaya has brought MarkPlus&Co. to be one of the respected companies in the Asia. These examples show the power of people in marketing.

My dad once told me that in Chinese there is a saying: "It takes only 20 years to grow a tree however 100 years would not be enough to grow a person". This means it takes forever to create an outstanding person since life is a constant learning experience. I think great companies surely know the people power in business and they really invest in the development of their employees rather than focus merely to their profit. I mean, the profit will come when your people show outstanding results.Let us learn to be a better person in life. Just a simple sharing. Comments, opinions, and questions will be greatly appreciated

David Herlambang
MarketingFirst

Thursday, May 17, 2007

Sometimes Being Simple is the Answer

I would like to share a bit phenomenon that I just found out this afternoon. My company just decided to create a new subsidiary and I will be the main operator. The subsidiary will concentrate on the diversified financials which basically will be investing the parent company’s money in a lot of different financial products. Hopefully, in less than a hundred years this could grow and become like Merrill Lynch, UBS, Morgan Stanley, or Macquarie Bank (fingers crossed…hehehe).

Secretly, I also have a deep interest in the financial market. I started trading in the Australian Stock Exchange approximately three years ago. There are a lot of interesting phenomena when I was analyzing the companies within the market. Today, in particular, I started the analysis by collecting the important raw data and information to be processed to the next step of the analysis. I came across to a company which almost has never attracted the media attention. Interestingly, this silent company somehow has grown for almost 700% in price within the last five years.

The name of the company is The Reject Shop. They are basically the discount variety retail sector. Therefore, their target market obviously does not expect luxurious and branded items. Basically, there are a lot of discount shops like them in Australia. What makes them special and different from the others? Why the customers prefer to shop in the reject shop instead of the two dollars shop in the corner?

Unlike the majority of the discount stores which usually very unorganized and uncomfortable, The Reject Shop differentiate themselves by creating organized and comfortable stores for their customers.

Tight budget does not always mean sacrificing comfort and tidiness. This is a very simple concept. Shopping items at the discounted price in a “shopping mall” like store. No wonder their share has increased crazily for the past five years. Sometimes we forget about simple things in marketing. There are a lot of new luxurious supermarkets fighting to obtain more market share by doing more promotion. Therefore, sometimes being simple is the answer.

What do you think about simplicity in marketing? Do you have more examples that show simplicity in marketing? Do you have a simple idea that can change the market? Please share it to the rest of the group.

Just a simple sharing!!

David Herlambang
MarketingFirst

Wednesday, May 9, 2007

How do the professional businesses market themselves?

This sharing is basically a discussion. Probably some of the beautiful marketing minds from the forum could help me to ease my question. I have been applying for a lot of jobs for the last couple of weeks. I always have a dream to be a consultant one day. Therefore, to be accepted by one of the huge management consultant companies would be a fairy tale to me.

In researching the management consultant companies, I came across some great names in the industry such as McKinsey&Co., Boston Consulting Group (BCG), and Bain&Co. It is amazing to hear and read what they have done to the society. For instance, McKinsey was hired by the Indonesian government when Aceh was devastated by the tsunami.

In the 1970s, BCG created and popularized the "growth share matrix", a simple chart to assist large corporations in deciding how to allocate cash among their business units. The corporation would categorize its business units as "Stars", "Cash Cows", "Question Marks", and "Dogs", and then allocate cash accordingly, moving money from cash cows toward "stars" and "question marks" that had higher market growth rates, and hence higher upside potential.

Bain&Co with its slogan “helping makes companies more valuable” has consistently helped their clients to outperform the S&P index by 4 to 1 ratio.

These examples are just a few from many other that could show how popular and great they are. In accounting there are the big four, PWC, Delloite, KPMG, and Ernst and Young. In engineering there are, Kellog Brown & Root and Honeywell. I refer to these companies as professional companies.

The question is how they market themselves in order to excel their services compared to the competitors. Obviously, I have not seen any TV, magazine, and any other form of advertisements from these companies. Is it only their brand that creates the sales for them? Is it only words of mouth?
If one day we would like to create a professional company what do we have to do in order to compete these companies? How do we market ourselves? Please share and help me to reveal these questions.

David Herlambang

MarketingFirst

Friday, May 4, 2007

Meet Me in Media Kawasan




The second article is out people!!! hehehehe

Wow, it is actually a great experience running this blog and writting articles to the media. I have received a lot of support from my readers and friends. Thank you for all your support!!

Let us enhance the power of sharing.
Here is the short abstract to the latest column for them who do not understand Indonesian:

More than Just Advertising

In the modern business environment customers have reached the saturation point in terms of being exposed to advertisements. Therefore, marketing surely takes more than mere advertising in order to conquer the market. A few decades ago advertising managed to create leaders such as Procter&Gambler, Coca Cola, and American Express. However, time has changed this nature. We need to redefine marketing in order to survive. Lazy marketing with only advertising as the main agenda would no longer applicable.

Hence, we need to create further connection with our customers. We need to cooperate with our recent customers in order to obtain the new customers. We need to ask our customers what can be done in order to fulfill their needs. For instance, eBay has created an affiliation program with the recent customers in finding the new customers. They would not be hesitant in promoting their customers’ businesses. Moreover, they also give their customers commission whenever sales is done through the customers.


The example shows that modern marketing requires endless creativity and closeness to the market. I am sure there are still a lot of marketing strategy that could be implemented specifically to your business, and hence no more lazy marketing.

Feel Free to Comment, question, and give any opinion (positive or negative) to me

David Herlambang
MarketingFirst

Wednesday, May 2, 2007

Free Items Giveaway…Why are they doing it?

A great blogger named Devi Girsang asked to the public in her last posting what actually is the objective of companies giving away free items. This is an interesting issue since I have not thoroughly thought about it. Is it just giving away? Do they try to introduce the products into the market? Or do they have any other reasons behind it? In this sharing I would like to answer her question from the marketing point of view.

I assume everybody knows about Robin Hood. In the story he steals money and jewelries from the rich and gives it to the poor. This then leads to the high popularity of Robin Hood among the poor. They also have a huge sympathy and support to Robin Hood with all their heart. I think this analogy works pretty much the same with the company that gives away free items. They might try to attract the public attention by teasing them with prizes.

Seth Godin coined a theory called Permission Marketing. He basically points out that in this modern society, marketing should engage strangers to be our friends, and friends into our customers. Permission marketing is about building an ongoing relationship of increasing depth with customers. Therefore, the giveaway process might just a good start in developing the ongoing relationship.

In the internet, certain websites usually ask for our contact details (email address, phone number, etc) before we can actually join the pool of the free giveaways. Unintentionally, we are giving permission to them to contact us in the future for further promotional issues and updates. This is also another practice of permission marketing.

Giving away items also develops the sense of giving back some of the profit to the society. This then increases the loyalty of the existing customers and also attracts potential customer’s attention. This could also attract the media coverage and reviews from the third party which again endorses the public relation (PR) in marketing.

For the newly introduced products this method could be used to increase the awareness of the product in the market. At the end of the day, word of mouth is still the best promotional method. By endorsing the usage of the newly introduced products the company gives the small tease of how great the product is.

I hope this simple sharing could answer the question.
Comments, opinions, and questions would be deeply appreciated.

David Herlambang
MarketingFirst

Wednesday, April 25, 2007

Jakarta Undercover and Marketing

Jakarta is a capital of sex entertainment, and in this workmanlike account, Indonesian journalist Emka offers a pleasure tour of some of the rarefied adult venues. He assumes a grating, disingenuous tone as he gains access, via friends and professional contacts, to the naked parties and sex-for-hire clubs that require an inexhaustible supply of beautiful native women and foreign currency to keep afloat. Arriving at one underground party, thanks to the exclusive membership (costing $5,000 for six months) of an acquaintance, Emka pulls back a curtain at the nightclub to behold this sight: "Nobody was wearing anything!" The author indulges in a "Triple-service VIP Sauna Special" (bathed and massaged by two women who vie for his attention while telling him, "We're stupid because we're willing to be used by men") and observes a "Squeals on Wheels" transaction (sex in a moving car). He's seated in the front next to the driver, while his friend enjoys the action in the backseat. There are no surprises, as Emka barely scratches the surface of the sordid Indonesian sex industry fed by the sad legion of bored and desperate mammies (older procuresses), prostitutes, gays, foreign sex workers and wealthy fetishists.

The first paragraph is quoted from the publisher review on the Jakarta Undercover book which took Indonesia by surprise approximately 3 years ago. Over 200,000 copies sold in Indonesia since it was launched. The book even spawned the sequel (Jakarta Undercover 2), comic, and of course the movie. Moreover, this book also available in English and currently being sold in Amazon. It also attracts a lot of attention to be reviewed by the third parties on the internet and the printed media. In Australia the movie would be showed shortly and I have the privilege to be trusted in reviewing the movie from the marketing point of view by the management.

I met Moammar Emka a couple years ago before he became famous and we even played a game of billiard at Gardu Billiard Jakarta. He probably does not remember me after all this year. I personally think that he is a great marketer. As a marketer I always try to analyze the situation and wondering why this book could be such a phenomenon. Is it the controversial content that invites the curiosity? Is it the right product in the right market?

The answer is “yes” to both of the questions. Perfect timing of a perfect product in the perfect market, that what I perceive Jakarta Undercover is. With the background of the eastern culture we cannot deny that the older Indonesian generation still perceives sex as a taboo topic to be discussed in public. However, the globalization era and information age really shift the values within the society which creates a perception that sex topics to be in a grey area (not white and not black).

Consequently, the society becomes more curious in regards to this issue. Being left by a huge curiosity, of course Jakarta Undercover is a great product. In the sex industry Indonesian society is like teenagers. As a teenager we always try something new, have a huge curiosity, and try to find new information as much as possible.

It has the differentiation compares to the other books, the controversial content which discusses the sex and metropolitan life in Jakarta. It has the clear unique positioning, as the first book that gets into its reader’s mind in its category. The story visualization through the flexible and easy language also fulfills the need of its target market. Moreover, it has the public relation (PR) power that attracts the media attention due to the controversial content.

For every one in Australia that have not read the book, or just curious about the Jakarta’s sex life, or just want to have fun then come along and watch the movie in Sydney and Melbourne. It will be good!!

In Sydney the movie will be showed at the University of New South Wales, Kensington Campus

Where: Rithcie Theatre, Scientia Building
When: Wednesday, 12/05/07

with three different sessions: 3.00 pm, 5.30 pm, and 8.00 pm
Ticketing and Enquiries: Grace - 0415 441 717
How much: AU$12.00 (Presold), AU$15.00 (At door)


David Herlambang
MarketingFirst

Thursday, April 19, 2007

The deepest condolence to all Virginia Tech Shooting Massacre


On behalf of the MarketingFirst Group I would like to express my deepest condolence for all the family and friends of the innocent victims of the Virginia Tech Shooting Massacre. Be strong.

The Media Power

Approximately a month ago I went to a website called http://www.oneredpaperclip.blogspot.com/ which is run by a Canadian, named Kyle MacDonald. He practically traded a small paper clip for a house. Of course it did not happen in one trade. In the website you could see how he started his journey with the paper clip and 14 trades later he managed to obtain the house. What impress me the most is he did it only within a year. WHAT A STORY!!!

He also admitted that he did not spend a cent of his money to advertise his intention. He started the trade from the craiglist website in the barter section. He basically started to tell the world about his intention from his blog. It was probably his unique story that attracted the media attention. Almost all the media from around the globe discussed about him in the middle of last year. In Australia, all the television station was talking about his incredible story. This media euphoria then further stimulates more attention from the society.

To fulfill my curiosity I further browse the internet and accidentally hit a website that asks us to vote for the most popular internet celebrity http://www.webjunk.tv/gis/ and http://en.wikipedia.org/wiki/Internet_meme. Of course these people are actually famous in the global internet community. They managed to obtain the attention from the society through YouTube, MySpace, Friendster, etc. Some of them even managed to obtained 1.7 million hits within 3 weeks. This is amazing. And hell yeah!!! This is the power of the media.

Intentionally or not I have to salute them from the marketing point of view. They have managed to utilise the power of public relation (PR) as one of the marketing aspects. In this modern society penetration through our target market could be done by different approaches. They have also fulfilled one of the basic human needs, curiosity. As human we always want to see, hear, and read something new in our daily routine. We are always curious about a lot of things. That is why we cannot be separated from the news, TV, and of course internet.

Do you have another experience or story in regards to this phenomenon? Please share. Probably you could be one of the internet celebrities =)

David Herlambang
MarketingFirst

Wednesday, April 11, 2007

Salesman 101

I had a small experience that happened approximately two months ago. I was actually being a door to door salesman. This was done in order to get rid of the unwanted items from my warehouse. This is due to the fact that online market has a totally different nature with offline market. Hence, not all items that sell very good in the conventional store could behave similarly in the online store. Being desperate by the condition, I decided to give it a go.

It was the first experience for me and it was very very very exciting, depressing, frustrating, and also full of fun. It was exciting and full of fun because I met a lot of people in that particular day. Of course I could understand the market condition better from the conversation with the people. However, it was depressing and frustrating since I was rejected for so many times in a very short period of time. Honestly, I have never experienced that many rejections in such short period of time in my life before.

At the end of the day, I forced myself to extract the essential lesson from that particular experience.
  • Try to study the market first before you actually become a salesman. One of the biggest reasons why I did not sell was actually my products. As Mr. Pontoh said, a product should have a unique selling point and provide reasons for customers to buy.
  • Just do it!! It was really hard for me to actually start the initial conversation in selling the products. I was worried that I would be thrown away from the stores. The fear of being rejected would always keep you under pressure and might lead to the result of not selling any of the products. But do not let this feeling overtake your guts.
  • The last lesson is: Do not think about the rejection too much =). I think being rejected is totally normal. Instead of thinking about the rejection, control your energy to speak with the people that reject you and ask them why they do not want the product. Find out the best solution from your customer in order to make your sales rolling.

In conclusion, I give all my salute to all the salesmen out there. It is not an easy task to be done. Keep your head up!!!

Please share us your unique experience as or in facing a salesman in your life.



David Herlambang

MarketingFirst

Wednesday, April 4, 2007

Meet Me in Media Kawasan






To the great Media Kawasan that creates a Blue Ocean market in the Indonesian media industry. Thank you for giving me the great opportunity to contribute and share my marketing knowledge and experience to the society. Thank you for giving me a chance to learn more about marketing. Thank you.

I am now a new contributor for Media Kawasan in the marketing section. The first column was published publicly in last March.

The basic idea to start writing is to share my knowledge and experience in marketing and business. I personally believe that I learn more by sharing. I do not call myself a marketing guru therefore I am more than happy to hear any feedback from my fellow readers.

Secondly, I would like to create a new image of marketing within the society. Most of the time people always relate marketing to salesmen-ship or advertisement. They are one of the ingredients of marketing but not the whole lot. In fact, marketing is actually needed by everyone. It has an important role in many life aspects such as career, business, fund raising, social works, and of course love.

I am still trying to write more in the other media such as Australian Marketing Magazine and newspaper. Therefore, wish me luck guys =)

The next column in Media Kawasan will be in May 2007. So, check it out!

David Herlambang
MarketingFirst

PS: This column is in Indonesian. Should you need me to translate it, please do not hesitate to contact me.

Price War…It’s everywhere!!!

I would like to share a living situation in a business environment. I suppose the majority of the members are or have experienced this phenomenon called price war. It is so human that we could be trapped in the price war within our business environment. Price war sometimes could be healthy to the market. However as the old one said enough is enough, there are some limitations that should be set in order to allow us to still obtain profit.

As I said before, I was working in my own restaurant at the early age. We were the first restaurant in our area. Within five years a first competitor occurred and positioned very close to us. They declared the price war and I have to admit our sales dropped. The young David can only see the sales plummet.

After ten years, I started my own business, Klick ‘N Save. We mainly try to focus on the nursery industry. We started to sell the baby furniture, such as rockers, strollers, cots, and swings. In the market we respect our competitors and try to keep the price stable. We did not destruct the price by selling branded items at a very low price. However, new competitors always come to business. Somehow, they think that the only way to crack the market is through price. They sell the items at a crazily discounted price even though they obtained the items at the same price with us. Honestly, the older David is still confused in facing this situation =)

At the end of the day they always give up in the price war. Usually, they decide to increase the price eventually. This is totally understandable since they surely also need profit to keep up and running the business. However, what about the heavily capitalized competitors? Surely they still have a lot of capital and able to afford selling items at the discounted price for the long period of time. How can we beat this price war?

As the Indonesian said “malu bertanya sesat di jalan” in English “shy of asking for assistance would make us fail”. In this very good opportunity I would like to ask the forum for suggestions in battling against this business phenomenon.

Any opinions, suggestions and questions will be appreciated.

David Herlambang
MarketingFirsthttp://www.marketingfirst.blogspot.com/

Wednesday, March 28, 2007

Towards the "Good Will" Marketing Revisited

I would like to share a little experience that might be useful for the rest of the members. As a marketing director I was sent by my company to Melbourne for two days to present in a yearly exhibition called Australian Toys and Nursery Fair. This event is actually very important for every manufacturer, wholesaler, and retailer in the toy and nursery industry. This is the chance for manufacturer to exhibit their products and promote their creation to the wide range of wholesaler. To the wholesalers, this is a great opportunity to create more connections with retailers. Of course as a retailer, I found this exhibition is a great chance to recognize the latest trend in the industry, develop more contacts, and predict the future of the industry.

That was actually the first time for me to be there. I really did not expect that toy industry is actually THAT BIG!! The ranges of the categories were exhilarating. It started from art and craft toys, nursery products, extreme games, puzzles, board games, soft toys, learning and developmental toys, action figures, extreme hobbies, die cast, and the list goes on and on. The size of the companies that exhibited there also ranges from a very small company to the humongous sized companies, such as Mattel (the creator of Barney the Dinosaur, Barbie dolls, UNO, etc) and Hasbro (the creator of Monopoly, Sesame Street, Bratz dolls, etc).

My most important mission was to develop contacts to the great suppliers and manufacturers. As a retailer, especially a small retailer like us, it is important to secure the deal that enables us to obtain the great items. This deal will enable us to follow the trend in the industry. However, in order to secure the deal sometimes it takes more than just money. The ability to purchase a great value of transaction does not necessarily secure the deal.

Somehow some manufacturers and suppliers have a good will with their existing customers. They have the exclusivity secured in order to maintain the desired price of the products. As an online retailer I was rejected by some of the companies. Firstly, online stores usually sell items at crazily discounted price which could be lethal to the brand identity of the item. Secondly, the global internet market could kill the existing local conventional stores by eroding their market (an online store in America could sell to Australia).

At the end of the day, the manufacturers have spent millions of dollars to build their brand and of course it is understandable for them to reject me. Mercedes Benz is always meant to be a luxurious car. Therefore, discounted selling of Mercedes Benz would be lethal for them. You do not want to create confusion within the market towards your brand identity.

My question is: Is it another practice of the good will marketing by the manufacturers to their existing customers or just merely business tactic?

Feel free to contribute, you are more than welcome!!

David Herlambang

MarketingFirst

Thursday, March 15, 2007

Less Expensive Marketing Plan For Your Business

No matter what your business concentration and no matter whether your business is brand new or has been in the market for some time you need to have a marketing plan. Otherwise, surely you will not be in business for a long time if you cannot sell your tangible products or services.

A marketing plan outlines what the current market conditions, company goals, competitions, and of course detailed brainstorm of your marketing strategy to penetrate the market. This also means understanding your current position in the market compared to your competitors. Another issue that some marketers often forget is the detail on how the customers perceive your company in the market. This issue is necessary since you can further analyze your company performance, correct any past mistakes, and of course redefine your positioning in the market. Some companies somehow like to throw away their marketing dollars by using ineffective advertising. Therefore bear in mind that cheaper marketing budget does not mean less effective to your business.

In this column I would like you to share some cheap marketing strategy that I have used in the past. Try it!!! They might boost your sales =)

  • I am a great fan of Public Relation (PR). This is free!! Create a good relationship with the local media, local editors, and writers in order to obtain company press release. Moreover, somehow PR has proven to be more and more effective. Well, you can ask Al Ries if you do not believe me =)

  • Create more connection within the industry by joining the industry organization which could enhance your networks to the potential customers or even suppliers.

  • Get online!!! Develop a website with features that could actively involve your customers. For instance, create a blog and forum. This is another form of PR which also could increase the chance of your company to be found by the potential customers (Blog could increase the hit rate through the major search engines eg. Google, Yahoo, MSN).

  • Work together with your customers. Appreciate them and affiliate with them in order to find the new customers. Keep them up to date.

  • Word of mouth is the king of publicity. Try to encourage this. Every business would have the unique way in encouraging word of mouth.

  • JUST DO IT!!!

David Herlambang


MarketingFirst