More than just products or services

First baby, first salary, first impression, and obviously first love. What actually makes the first instances in most cases are important. Why the term first love is actually very famous in the society. Why first love is a thrilling moment which can last forever in our memory. Why the experience of having a first baby would be celebrated by most of the parents. Of course I believe that most of the readers still can remember the moment of accepting their first salary. Why people are coping with their first impression in the job interview in order to astonish their potential employee.

Why those first occasions sometimes could be very important in our life. And the most importantly why sometimes we talk about those occasions to our family, friends, and relatives. It is the experience which creates an outstanding memory that last forever in our mind from those instances. The great experience which we obtained in the first love which makes us to be addicted to it. When the first baby was born we received the enchanting experience baby inspires us in forming a good family. The experience obtained by the interviewee in the first job interview will obviously determine our future as a prospect employee.

Last night, a very good friend was telling me about his great and unforgettable experience in climbing Sydney Harbour Bridge with BridgeClimb. BridgeClimb is an Australian company which facilitates tourists or local residents to experience the thrilling and exciting climbing one of the greatest Australian Icon, Harbour Bridge. He was really enthusiastic in telling the story and encouraged me to try it. He promised that I would never be able to forget the experience if I dare to try it. He cannot even stop talking about it. And of course the word BridgeClimb was mentioned for a million times in the conversation. Silently I told myself “He is really promoting BridgeClimb in front of me and it amazingly works, because I am willing to try it”. The challenging experience actually induced the great marketing.

Do you know YouTube? YouTube is one of the fastest growing websites. They success in retaining their customers is simply due to the experience that they offer. The desire to be the centre of attention in the society is a human nature. People want to be famous and recognized by the society. YouTube offers the experience to be famous not even locally but also globally. In YouTube you could create your own video and publish it to the world. You could even create your own channel. The only limitation is your creativity. The instant famous experience then creates a great marketing publicity. Both in American and Australian news even discuss about this amazing website. Marketing without money!!!

Nothing beats word of mouth in publicity. It is free and the target market would not be defensive as if when a salesperson approached them. Whenever customers obtain a good experience, there is a high possibility that they will become loyal or even falling in love to us. Remember when you are in love? You would across the sea only to see your loved one. Customer would forget about the price when they are in love. Moreover, there is also a high possibility for them in telling their experience to their relatives. Therefore, sell more than your products or service.

Comments, opinions and questions are greatly appreciated.

David Herlambang

MarketingFirst

Being Sensitive to Human Needs

I went to a small high school in Jakarta six years ago. The classes were initially not equipped with air conditioners. Everybody knows that Jakarta is always humid and hot. Being in a class with another forty young and energetic students with Jakarta’s weather was not particularly a fantastic experience. Everybody was complaining on how hot the class was. Therefore, the student committee directed the students’ voice to the school in regards to this issue. They basically stated that air conditioners were crucial in order to create more comfort to the students and hence higher productivity.

After a long debate, the school agreed to provide air conditioning system in our classes in a couple of months. Everybody was exciting. However, after the system was set up some students were complaining on how the classes were too cold. I suppose this simple experience represents how human is never meant to be satisfied. Once a need could be fulfilled there will soon come a new desire. Human desire is always changing from time to time. And I believe that the nature of business is actually to provide satisfaction to human desire.

Edward De Bono stated that human needs are basically divided into several different types. These are physiological needs (air, food and water), safety needs (life stability and protection), social needs (love and family), ego needs (status, fame, and glory), and self actualization needs (achievements, freedom, and feelings of confidence). One of these needs would be our primary need in different context of life. In the modern society, the change in the global condition would alter our primary needs. Hence, different condition would trigger different priorities.

When the twin towers were attacked, safety needs became the American primary concern. When the great drought came early last year in Australia, water need became the priority. In business environment, being sensitive to the change in human or market desires would enable us to be a market leader. The market is actually more important than the marketing itself. However, this issue is often forgotten by the marketers. By understanding human desires we would be able to create the high value products or services. The job of a marketer is to be able to determine changes in people priorities and turn it into a new solution.

As the number of websites on the internet increased exponentially, Google was the only company who understood that being able to find reliable and relevant information easily from millions of websites would be the major need. With their search engine we could find our desired information within seconds. No wonder google attracts hundreds of millions of traffic daily.

Pesan Delivery (PD) understands the Jakarta’s chaotic traffic causes troubles to office worker fulfilling their lunch appetite. It would take more time driving to the favorite restaurant than actually indulging themselves with the lunch. Therefore, they provide the delivery services from a wide range of great restaurants to provide simplicity and convenience.

Therefore, try to be close to your customers.

Comments, opinions, and questions are more than welcome.

David Herlambang
MarketingFirst

Strategic Location!? We live in cyber world era!

It just a few days ago when I wrote an article saying that business owners cannot rely solely on strategic location (See: Strategic Location & Customer Loyalty…). A few days have since passed and I have been getting a good feedback on it. It basically points out that now we can shop from home. Thank you to Mr. Internet. And no where can strategically beat shopping from you couch. Ouch!

This is a really good point and makes me thinking why should I be bothered on spending all those money for one particular spot in the CBD (Central Business District), which will cost me around three grand a week (rent)? Where, if you think about it, it is possible for me to open an online store with considerably lesser amount (per week).

I said on previous article: “if a business needs to relocate to un-strategic location, it will need to rely not only on customer loyalty and branding but also a new way to lure customers by understanding their dreams (expectation).” This is needed because customer will incur more “inconvenient” cost and in return we have to offer something more.

Now, instead of having all the troubles figuring out customer’s dreams, why don’t we go online? If I may borrow eBay terms: “List locally, sell globally.” And at the same time, our business is in everyone’s living rooms.

Right now, some of you may still wondering why businesses still queuing for a strategic physical locations, and more of you may be puzzled with the fact that those big retails companies are gripping hard on their network of stores.

Well, it all comes to people preferences. Some people like to touch, feel and try items before they buy it. Other group of people may like window shopping, but then end up buying things. And few people I know were actually saying that they rather go to the nearest shopping mall rather than paying $10 shipping and handling fees. They all have their own reasons.

Cyber market or physical market, each has its own target audiences. A statistic has found out that the main reason people shop online was because of the convenience offered. They don’t have to queue; they don’t have to find parking. In comparison with the above, we may have two different personalities here.

People will always be different one another. A few years back, when Wal-mart offer all in one shopping experience, it has not yet made street corner convenience store die. I think even with the existence of Amazon, people still sell books in-store. I believe that people have different needs, different way of doing things, or maybe different preferences. All these different will contribute on their shopping behaviors.

It is by understanding existing customers and potential target market; a business will be able to make the best decision for them. Whether, following IKEA (one centralize massive store), do it like Target (stores all over major shopping centers) or abandon the old world and join the new cyber world. Understanding customer’s expectation and offering them with the value they want will pose a significant benefit.

Author: Michael A Oei – MarketingFirst Group

Strategic Location & Customer Loyalty... Will it be enough?

Yesterday, I was driving twice the usual distance to my supplier new office. It was raining heavily. And as usual, traffic and wet road are in-separate able condition. At that moment, I start questioning myself; why do I want to go there still? And whether it would be better off for me to change supplier?

Talking about location, I remember Hoteling Model (economics) which tries to explain on how companies with substitute product usually pool at the same strategic geographical location. It could be for customer’s convenience, but mainly to maximize their market share based on location.

Apart of being close to customers, this group of sellers with similar products also attracts customers in different way. They collectively have stronger location brand (i.e. Mangga Dua – Pusat Grosir (Jakarta, Indonesia), Italian Forum – Italian Food Location (Sydney, Australia). But to what extent can a business rely on these advantages?

A business sometimes needs to relocate its location. Some of the obvious reasons are; the current rental agreement cannot be renewed, the new rental cost is too high, the current space can no longer accommodate the expanding business, and few other similar reasons. If a business has to move to un-strategic location, it will no longer have the advantages stated above.

The need for customer loyalty starts to kick in, when relocation is needed. If a business only relies on location based advantages, it will be put in disadvantage position. Here, it can be seen that branding and building customer loyalty will play significant role.

I think I can consider myself as loyal customer, because I still want to drive the distance only to visit the new store for the first time. Moreover, my satisfaction with that store customer service, pricing, product quality and range could be the force which drove me into its new location. But, these old driving forces might not be enough to push me back for the second time. I could feel the associate cost and increasing distance, moreover the convenient of having supplier nearby.

My supplier has to induce me, so that I will forgive him for moving so far away. And he does. He knows my wish list and he make my dream come true. Understanding customer dream if I may say. In this case he provides me with better products range, something which I truly want. Well he put it this way when I came in: “I have bigger space now, and I know that you are looking for this kind of products. I will have more variety in a few weeks time.” Good enough for me to check him back.

This case is also happened with IKEA. IKEA used to have many stores in different strategic locations. But one year ago, they closed all the stores except one massive store. And the new location is far from the city centre. I went there once and believe it or not, I want to come back! It is simply because they offer me a new shopping experience. That was the biggest furniture store that I have ever been to! And even that I have one big furniture store nearby, I still feel the needs to visit IKEA.

Well, I guess my loyalty won’t be enough to put me behind the wheel, driving the long miles for the second time. Unless, they lure me with something more! How about you?

Author: Michael A Oei - MarketingFirst Group

Advertising...Oh Advertising

Frankly, I am not a great fan of winter. This is because it requires me to dress like a bloody penguin to combat the unbearable cold weather. Summer, however, is like heaven for me. I can sun bask on the beach while enjoying the amazingly beautiful Australian nature and of course the bikini babes.

Another major attraction in Australia during summer is the Australian Open – one of the greatest sporting events in the nation. With millions of fans around the world, companies such as IBM, Garnier, KIA Motors and Medibank Private are willing to sponsor the event. These sponsors would be heavily and exclusively advertised both on the venue and on TV during the vents. Huge banners were displayed and TV ads were repeatedly broadcasted during the matches. Looking at all the advertisement, a question suddenly popped up in my mind. Are these advertisements effective? Are these sponsors paying too much for their campaign? How much sales can these advertisements generate?

Honestly, I have not bought any products from these sponsors before. Besides, people that I know of have not dealt with these sponsors either. In addition, I barely able to recall which advertisements actually appeared on TV nor I can remember what was on the huge banners displayed around the courts. How many of you have reacted to actually purchase products based on advertisement? When was the last time that you actually bought any product as a result of bumping into an advertisement broadcast?

I personally think that sometimes advertising has lost its value in communicating information of the product or service to the potential customers. Often advertisements are so creative that it could not be understood. Often we see advertisement which does not even put the wonderful values of the products in it. In my opinion an advertising dollar should be able to bring at least a dollar in sales to the company. The problem is the majority of marketers who I assume understand marketing simply define marketing as putting big advertisements to publicize their company. Surely marketing means more than throwing our money.

Classic marketing which means putting ads and waiting for customers to come was a real success more than a decade ago. In fact, this method turned Procter&Gamble, Coca Cola, and American Express to be the great leaders in their industry. However, this method is no longer applicable in the modern society. According to Al Ries in his book “The Fall of Advertising and The Rise of PR”, a person meets at least 300 advertisements daily. This number then creates an immune system in our brain towards the conventional advertising. Marketing should be energetic which means communicating actively with the potential and existing customers rather than waiting for them to come.

Google has not advertised its company even a single time. Their fame simply comes from the word of mouth. They basically focus on delivering what the customers are looking for which is the reliable information from their search engine. Before their success they asked their customers how google.com could be improved in order to be more effective and efficient. However a lot of marketers forget about this fact. They only concentrate on obtaining mind set of their potential customer. Mind set is nothing. You could remember how funny and creative an advertisement is without having any desire to buy the product. You could talk about an advertisement with your friends, but it does not mean that the advertisement create stimuli for you to purchase the product.

A supermarket in Australia conducted the good will marketing instead of merely throwing advertising dollars. At the beginning of January they dedicated a day profit for charity purposes. This marketing method is really creative since it allowed customers to participate in the charity as well as creating a chance to be impressive with their customer service. Moreover, for this particular event their company was then freely publicized by the mass media and the society due to their good will. It was a huge successful marketing campaign. Therefore, they managed to create a cause for their customers to come to their store and experience the customer service. These examples show that we have to be creative in our marketing not in our advertising.

In order to generate a great marketing strategy the combination of both advertising and Public Relation (PR) should be in harmony. Therefore, please do not ignore your PR department and merely depend on advertising in order to obtain publicity.

Welcome to the public relation age.

Comments, questions and opinions will be truly appreciated.

David Herlambang
MarketingFirst

Current Problem, Current Opportunity

The phrase ‘something happens for a reason’ might seem too trivial for us, but few people realize that certain things do happen for good reasons.

Australia, just like any other Western countries, is turning into a health-conscious society. Its alarming obesity rate triggers the Heart Foundation to promote healthy lifestyle through its campaigns. One of its significant efforts is to introduce a “tick” program, aimed to help consumers make healthier food choice conveniently. Basically, all food products which have met strict heart foundation standard have a “tick” label on their packaging. This “tick” will differentiate these products from those which are deemed to be unhealthy.

McDonald’s, being the biggest junk food provider in the world, sees this healthy lifestyle trend as an alarming situation. When more and more people become health-conscious, they will consume less junk food. This would mean bad business for this giant fast food chain.

Aware of this threat, McDonald’s quickly joins the crowd by going into the health-conscious bandwagon. They create new menus which can get the Health Foundation’s approval “tick”. They do continue selling the old hamburgers and fries, but some of their menus are healthier. This is a huge loop for their marketing. This strategy causes McDonald’s to have an ‘excuse’ to declare that they do try to address the current problem, even though they are still selling junk food.

Currently, McDonald’s has Health Foundation’s “tick” for their nine new menus. They create a better image to health-conscious people, and with this image, they attract new customers. Customers who have left McDonald’s after being disgusted by their junk food, are now invited back to try their healthy menus.

Similar story also happened in Jakarta few days ago. LG Indonesia announced that they would replace all LG in-store products that were damaged as a result of the flood. By doing this, they bring their relationship with the customers, in this case, the store owners, to the next level. Think of the store owners as LG’s front soldiers. These personnel will have a huge impact in determining who shall win the battle in obtaining the market share of the electronics in Indonesia.

Australia’s McDonald’s has switched a major threat into a new opportunity to get new customers, thus increasing profit. LG Indonesia also followed the trend of changing a problem into new opportunity to expand their market and distribution coverage.

Only few can see a problem as an opportunity, and when these people say that things happen for good reasons, I bet they are right.


Author: Michael A Oei – MarketingFirst Group
Edited by: Melissa Giovanni