Marketing 4.0 Moving from Traditional to Digital

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1 Marketing 4.0 Moving from Traditional to Digital Hermawan Kartajaya Founder and Chairman of MarkPlus, Inc. Co-Founder of Asia Marketing Federation Staf Khusus Kementerian Koperasi & UKM

2 About Hermawan Kartajaya s International Books Our intellectual properties have been endorsed by Philip Kotler and acknowledged by international publishers The latest international book, Marketing 3.0, published by John Wiley in the US in May 2010, is translated into 26 languages Every year, we predict trends going forward and define the recommended marketing practices in Indonesia

3 By John Wiley US 2010 Available in 27 languages By John Wiley Launched at MarkPlus Conference 2017 Available in 20 Languages

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5 Marketing 4.0 Licensing Deal from August 2016 (before publishing) April 2017: 9 months 19 languages including English, 20 editions, 24+ countries) 1. United States, Canada, Singapore, UK, Australia (English) 2. Thailand (Thai) 3. China (Simplified Chinese) 4. Japan (Japanese) 5. Poland (Polish) 6. South Korea (Korea) 7. Brazil (Portuguese) 8. Vietnam (Vietnamese) 9. Germany (German) 10.Spain (Spanish) 11. Italy (Italian) 12. Portugal (Portuguese) 13. Taiwan (Chinese) 14. France (French) 15. Iran (Persian) 16. Turkey (Turkish) 17. India (English) 18. Netherlands (Dutch) 19. Russia (Russian) 20. Ukraine (Ukrainian)

6 About MarkPlus, Inc.

7 Our Offices Banda Aceh Medan Pekanbaru Pontianak Balikpapan Manado Padang Palembang Banjarmasin Makassar Jayapura Jakarta Bandung Semarang Solo Yogyakarta Surabaya Denpasar

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12 Marketing Wiley

13 Marketing Thailand

14 WHY Traditional Marketing WHAT: HOW:

15 Anatomy of Change Technology Pol- Leg Economy Soc- Cul Market

16 4C Diamond: A Model to Analyze Business Landscape CHANGE Technology Pol-Leg Economy Soc-Cul Market COMPETITOR TOWS Examination CUSTOMER COMPANY Source: Rethinking Marketing: Sustainable Market-ing Enterprise in Asia Philip Kotler, Hermawan Kartajaya, Hooi Den Huan, Sandra Liu

17 STV-Triangle: Positioning-Differentiation-Brand Triangle brand integrity POSITIONING DIFFERENTIATION BRAND Source: Rethinking Marketing: Sustainable Market-ing Enterprise in Asia Philip Kotler, Hermawan Kartajaya, Hooi Den Huan, Sandra Liu

18 STV Triangle: 9 Core Elements of Marketing Source: Rethinking Marketing: Sustainable Market-ing Enterprise in Asia Philip Kotler, Hermawan Kartajaya, Hooi Den Huan, Sandra Liu

19 Customer Product Brand Management Customer Management Product Management Brand Management

20 WHY: WHAT New Wave Marketing HOW:

21 New Wave Marketing

22 The Future of Power Shifts Technology The Age of Participation & Collaborative Marketing From Vertical to Horizontal Political Legal Economy Social Culture The Age of Globalization Paradox & Cultural Marketing From Exclusive to Inclusive Market The Age of Creative Society & Spiritual Marketing From Individual to Social

23 New Wave Marketing: From 4C to 5C CHANGE COMPETITOR 4C CUSTOMER COMPANY

24 New Wave Marketing: From PDB to TRIPLE-C brand ntegrity CLARIFICATION OF PERSONA CODIFICATION OF DNA WHAT IS YOUR COLOR? POSITIONING CONNECTED CATALYST CIVILIZED DIFFERENTIATION WHAT IS YOUR AUTHENTICITY? CHARACTER WITH CHARISMA BRAND WHAT IS YOUR AURA?

25 12 C of New Wave Marketing

26 VALUES (How) VISION (What) MISSION (Why) COMPANY Marketing 3.0 INDIVIDUAL Mind Heart Spirit Deliver SATISFACTION Realize ASPIRATION Practise COMPASSION Profit Ability Return Ability Sustain Ability Be BETTER DIFFERENTIATE Make a DIFFERENCE

27 WHY: WHAT: HOW Marketing 4.0 Moving From Traditional to Digital

28 Marketing 3.0 & 4.0 By John Wiley US 2010 Available in 27 languages By John Wiley Launched at MarkPlus Conference 2017 Total Languages: HERMAWAN 20 KARTAJAYA

29 Competitiveness Level of Brands L E V E L 3 ENGAGEMENT L E V E L 2 EXPERIENCE AHA L E V E L 1 ENJOYMENT OK

30 Customer Path: From Individual to Social Aware Appeal AttitudeAsk Act Advocate Act Again

31 Introducing New Brand Metrics PAR Purchase Action Ratio BAR Brand Advocacy Ratio

32 The Purchase Action Ratio (PAR) PAR = Act Aware

33 What PAR really means PAR = 0.5 Aware Appeal Ask Act Advocate Brand Awareness* +1% Market Share +0.5%

34 The Brand Advocacy Ratio (BAR) BAR = Advocate Aware

35 What BAR really means BAR = Appeal Ask Act X X X Advocate Aware Appeal Ask Act

36 Conversion #1: Creating ATTRACTION Loyalty (BAR) = Appeal Ask Act X X X Advocate Aware Appeal Ask Act

37 Conversion #2: Creating CURIOSITY Loyalty (BAR) = Appeal Ask Act X X X Advocate Aware Appeal Ask Act

38 Conversion #3: Creating COMMITMENT Loyalty (BAR) = Appeal Ask Act X X X Advocate Aware Appeal Ask Act

39 Conversion #4: Creating AFFINITY Loyalty (BAR) = Appeal Ask Act X X X Advocate Aware Appeal Ask Act

40 Most Common Customer Path

41 The Ideal Customer Path: Bow Tie Aware Appeal Ask Act Advocate Attraction Curiosity Affinity Commitment

42 Fix the Gap ATTRACTION CURIOSITY COMMITMENT AFFINITY Appeal X Ask X Act X Advocate Aware Appeal Ask Act - Brand positioning and differentiation - Marketing Communication - Community marketing - Social media marketing - Channel management - Sales force management - Service blueprint & customer care - Loyalty program

43 More New Wave Marketing As Brand Steps Up Competitiveness Integrating Legacy & New Wave E3 E2 E1 LEVEL 3 ENGAGEMENT LEVEL 2 EXPERIENCE LEVEL 1 ENJOYMENT LEGACY MARKETING Conventional marketing approach: Strategic Segmentation & Targeting Brand Positioning & Differentiation Tactical Marketing Mix (Product, Price, Place, Promotion) & Selling Approach Value-Creating Services & Processes NEW WAVE MARKETING Connected marketing approach: Confirmation to Customer Community Clarification of Brand Character and Codification Connected Marketing Mix (Co-Creation, Currency, Communal Activation, Conversation) & its Commercialization Customer Care and Collaboration A1 A2 A3 A4 A5 AWARE APPEAL ASK ACT ADVOCATE More New Wave Marketing As Brand Intervenes Further Across Customer Path

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