1 00:00:00.000 --> 00:00:01.450 Welcome back again 2 00:00:02.250 --> 00:00:07.210 The topic in this sub-session is marketing 4Ps 3 00:00:08.570 --> 00:00:11.230 So have we heard about the marketing 4Ps? 4 00:00:12.530 --> 00:00:14.830 Basically marketing 4Ps 5 00:00:14.830 --> 00:00:15.960 It's kind of a stand for 6 00:00:16.559 --> 00:00:19.900 very important factors, which they are 7 00:00:21.490 --> 00:00:24.040 the product, place 8 00:00:24.740 --> 00:00:26.550 price, promotion 9 00:00:27.009 --> 00:00:30.959 these are all marketing 4Ps 10 00:00:32.090 --> 00:00:34.790 If we have a great idea, 11 00:00:34.790 --> 00:00:39.080 if we have a very strong concept about those 4Ps 12 00:00:39.279 --> 00:00:42.160 then you are able to 13 00:00:43.270 --> 00:00:46.170 have a great marketing decision 14 00:00:46.170 --> 00:00:49.580 This is a all about the marketing, effort 15 00:00:50.210 --> 00:00:52.760 let's begin with the product first 16 00:00:53.599 --> 00:00:54.729 Product 17 00:00:55.529 --> 00:00:57.960 So what is the product, good product? 18 00:00:58.540 --> 00:01:01.840 The key to success, product is also service product and service 19 00:01:02.440 --> 00:01:05.110 Good product or good service is a key to success 20 00:01:05.460 --> 00:01:08.940 If you don't have any good product or good services, you cannot be successful 21 00:01:08.990 --> 00:01:10.530 It's a pretty obvious 22 00:01:11.680 --> 00:01:15.080 And then the good product or service to help a business connect with your consumers 23 00:01:15.849 --> 00:01:19.199 If we have a great product or services then consumers come to visit you 24 00:01:19.539 --> 00:01:22.400 and you can easily connect with consumers 25 00:01:22.840 --> 00:01:25.440 But if you don't have product good product or services 26 00:01:25.690 --> 00:01:29.879 then nobody visit you and you cannot meet your consumers 27 00:01:31.250 --> 00:01:33.310 so the most important thing is 28 00:01:33.510 --> 00:01:35.360 You need to provide 29 00:01:36.260 --> 00:01:38.960 Very clear value proposition 30 00:01:38.960 --> 00:01:41.300 Do you remember to what value proposition is? 31 00:01:41.719 --> 00:01:44.610 Value proposition located in the consumer side 32 00:01:45.189 --> 00:01:51.400 so the consumers perceive the very something valuable from your service and product 33 00:01:52.639 --> 00:01:58.120 So the value proposition is a very unique selling point that will be used 34 00:01:58.480 --> 00:02:04.669 to differentiate your product and service from your competitors 35 00:02:05.019 --> 00:02:09.719 So basically your value proposition and your unique selling point, 36 00:02:10.019 --> 00:02:12.659 make your product remarkable 37 00:02:16.639 --> 00:02:18.589 I will give you an example 38 00:02:18.639 --> 00:02:20.239 Let's look at the Dropbox 39 00:02:20.239 --> 00:02:21.739 Do you know what Dropbox is? 40 00:02:21.939 --> 00:02:25.190 Yes, it is an online storage service 41 00:02:28.110 --> 00:02:32.710 When Drew Huston explained this concept to the investors 42 00:02:32.710 --> 00:02:34.289 then investors ask him 43 00:02:34.839 --> 00:02:38.489 how many online storage services out there 44 00:02:38.489 --> 00:02:39.830 and then Drew Huston said that 45 00:02:39.880 --> 00:02:42.880 Yes I know then the investors ask again 46 00:02:43.080 --> 00:02:49.030 Then why we need additional online storage services? 47 00:02:49.630 --> 00:02:53.380 then Drew Huston replied to the question 48 00:02:55.319 --> 00:02:58.419 Why you don't use online storage service? 49 00:02:58.569 --> 00:03:01.909 None of you guys probably don't use online storage service 50 00:03:02.909 --> 00:03:07.640 Why because it is very difficult to use them 51 00:03:08.790 --> 00:03:10.839 so my service is to 52 00:03:11.639 --> 00:03:15.179 simplify the whole the process of using 53 00:03:15.479 --> 00:03:20.129 the online storage services you just click your file and drag file 54 00:03:20.429 --> 00:03:23.050 and just drop your file into our service 55 00:03:23.240 --> 00:03:26.290 Dropbox, so that's why I made the name of the Dropbox 56 00:03:26.290 --> 00:03:30.209 then the investors understood right away 57 00:03:30.559 --> 00:03:33.950 Then they decided to invest the money into the Dropbox service 58 00:03:34.150 --> 00:03:38.510 So, what makes Dropbox remarkable? 59 00:03:38.910 --> 00:03:43.860 If the consumer use the Dropbox service then they gain, 60 00:03:44.260 --> 00:03:48.950 the kind of a new value that never existed before, what are they? 61 00:03:49.200 --> 00:03:55.030 It's easy way to syncing file and collaborating with others and backing the file 62 00:03:55.330 --> 00:03:59.110 Easy way is the very important 63 00:03:59.410 --> 00:04:03.929 Yes, it's a quality already proven and usability is a user friendly 64 00:04:04.179 --> 00:04:08.429 So that's why these factors made Dropbox remarkable 65 00:04:08.879 --> 00:04:10.980 Again, marketing 4Ps 66 00:04:11.430 --> 00:04:14.620 One of the most important P is product 67 00:04:14.870 --> 00:04:19.720 You should prepare great product with very clear value proposition 68 00:04:19.920 --> 00:04:21.190 I will give you another example 69 00:04:22.580 --> 00:04:24.830 Let's look at the Instagram 70 00:04:24.830 --> 00:04:27.970 Many of you guys already use Instagram 71 00:04:28.320 --> 00:04:29.870 Then why you use Instagram? 72 00:04:30.070 --> 00:04:34.469 Because you perceive with some unique value when you use Instagram 73 00:04:34.869 --> 00:04:37.169 So what makes Instagram remarkable? 74 00:04:37.719 --> 00:04:40.629 So there is a visual storytelling 75 00:04:40.839 --> 00:04:45.539 When you use Instagram, visual storytelling possible 76 00:04:45.789 --> 00:04:48.990 and also you can experience increase in community involvement 77 00:04:50.519 --> 00:04:53.219 Then you can attract many fan 78 00:04:53.619 --> 00:04:56.579 If we have many fan, then you can make money from your fan 79 00:04:56.879 --> 00:04:58.759 This is a monetization opportunity 80 00:04:59.609 --> 00:05:05.880 These types of values never exist before so there is a no reason not use Instagram 81 00:05:06.230 --> 00:05:08.709 And what about the quality? Quality is such a great? 82 00:05:09.359 --> 00:05:15.079 Instagram allow you make a beautiful picture by providing some kind of beautiful filters 83 00:05:16.540 --> 00:05:19.799 then usability very simple to use 84 00:05:20.149 --> 00:05:21.999 You just open up the mobile application 85 00:05:21.999 --> 00:05:24.760 and just download the file and use some kind of filter 86 00:05:25.060 --> 00:05:27.720 Then, you can make you make a beautiful 87 00:05:28.320 --> 00:05:30.199 Kind of professional pictures 88 00:05:33.529 --> 00:05:34.929 Let's move on 89 00:05:35.700 --> 00:05:41.129 Alibaba's Taobao.com, the eBay entered the Chinese market 90 00:05:41.480 --> 00:05:45.640 then they fight with Taobao.com then later 91 00:05:46.160 --> 00:05:49.010 Taobao.com eventually won the game 92 00:05:49.360 --> 00:05:52.690 then eBay decided to quit the businesses in China 93 00:05:53.290 --> 00:05:54.740 How it is possible? 94 00:05:55.140 --> 00:06:00.829 Because the Chinese people perceive the Taobao.com much valuable than ebay.com 95 00:06:01.179 --> 00:06:06.610 Although ebay.com was a professional and has a global network and has a long history 96 00:06:07.260 --> 00:06:10.310 but the Taobao.com won the game 97 00:06:10.560 --> 00:06:13.480 What makes the Taobao.com remarkable? 98 00:06:14.970 --> 00:06:18.850 Because using Taobao.com is free of charge 99 00:06:20.839 --> 00:06:26.689 At the time, to use ebay.com, you should pay for this fee 100 00:06:27.389 --> 00:06:30.679 There is an insertion fee finalized fees, there are several fees 101 00:06:31.379 --> 00:06:34.270 The eBay never gave up their fee system 102 00:06:34.370 --> 00:06:37.419 So, to use eBay you should pay 103 00:06:37.969 --> 00:06:41.669 If you want to you use a Taobao.com, you don't have to pay 104 00:06:41.669 --> 00:06:42.890 So why not? 105 00:06:43.129 --> 00:06:45.720 There's no reason not to use Taobao.com 106 00:06:46.040 --> 00:06:50.090 That's why Taobao.com was very successful 107 00:06:50.290 --> 00:06:53.440 Please remember the first P was 108 00:06:54.119 --> 00:06:55.419 Product 109 00:06:55.419 --> 00:07:00.230 Good product is a prerequisite for your marketing 110 00:07:01.829 --> 00:07:06.749 Next P is promotion, remember the promotion 111 00:07:08.479 --> 00:07:11.779 The purpose of the promotion is to 112 00:07:11.779 --> 00:07:14.579 disseminate your information 113 00:07:14.579 --> 00:07:17.689 regarding your service and product to the consumers 114 00:07:17.939 --> 00:07:18.939 Why it is important? 115 00:07:19.189 --> 00:07:20.789 Because without these activities 116 00:07:20.789 --> 00:07:24.909 consumers don't know who you are, and don't know about your product 117 00:07:25.359 --> 00:07:26.759 about your services 118 00:07:26.759 --> 00:07:28.590 So this activity is very important 119 00:07:29.800 --> 00:07:32.799 Like this, promotion is very similar to the advertisement 120 00:07:32.949 --> 00:07:37.349 You advertise your service and your product to the consumers 121 00:07:37.349 --> 00:07:41.679 So you pay for the promotion fee to 122 00:07:41.679 --> 00:07:47.959 advertise your product, at the subway station or inside the subway train 123 00:07:48.659 --> 00:07:55.300 And also you put your advertisement on the billboard, on the highway 124 00:07:55.300 --> 00:07:57.600 this is kind of the promotion 125 00:07:59.250 --> 00:08:03.850 Again the purpose of the promotion is to make is to disseminate again 126 00:08:03.850 --> 00:08:09.310 Disseminate your information to the consumers to make impression 127 00:08:09.610 --> 00:08:11.370 To make a great impression 128 00:08:11.770 --> 00:08:17.159 to the consumers and then later you expect to have sales lead 129 00:08:17.509 --> 00:08:18.690 Who is the sales lead? 130 00:08:18.730 --> 00:08:23.340 Sales lead is a people who receive the promotion impression 131 00:08:23.640 --> 00:08:28.759 and who gives some thought to purchase your product, but they didn't purchase yet 132 00:08:29.209 --> 00:08:30.759 They are not actual consumers, 133 00:08:30.959 --> 00:08:36.580 but they they are consumers who has interest in your product 134 00:08:38.799 --> 00:08:43.719 Then later you try to make this, sales lead 135 00:08:45.310 --> 00:08:46.310 the prospect 136 00:08:46.310 --> 00:08:47.710 Who is the prospect? 137 00:08:47.710 --> 00:08:50.810 The prospect is a sales lead who actually purchase your product 138 00:08:51.010 --> 00:08:53.860 It's a kind of actual the paying consumers 139 00:08:55.210 --> 00:08:58.409 So again, the what is the purpose of the promotion the first one? 140 00:08:58.500 --> 00:09:00.139 You want to make impression 141 00:09:00.689 --> 00:09:03.189 in order to generate the sales lead 142 00:09:03.439 --> 00:09:07.289 and eventually turns this sales lead the paying consumer 143 00:09:10.839 --> 00:09:13.489 How to make a great impression to the consumers? 144 00:09:13.839 --> 00:09:15.200 There are two steps 145 00:09:17.280 --> 00:09:19.280 It's all about the message 146 00:09:20.290 --> 00:09:22.140 Al about the message you remember that 147 00:09:22.790 --> 00:09:25.730 So your question is how to make a great message 148 00:09:26.869 --> 00:09:30.819 Message make a good impression how to make a great message 149 00:09:31.069 --> 00:09:34.120 To make a great message, please remember two step 150 00:09:34.150 --> 00:09:35.550 The first one 151 00:09:35.900 --> 00:09:39.009 You need to make a very simple message 152 00:09:40.509 --> 00:09:46.009 and your message should be aligned with your value proposition 153 00:09:48.800 --> 00:09:50.150 I will give you example 154 00:09:50.250 --> 00:09:53.600 What about Apple's messaging? It's "Think different" 155 00:09:55.474 --> 00:09:58.360 This is simple message and 156 00:09:58.680 --> 00:10:01.830 very well aligned with the value proposition of the Apple 157 00:10:02.994 --> 00:10:07.750 If the consumer purchase Apple, then they perceive themselves as a different 158 00:10:08.850 --> 00:10:10.400 What about McDonald's? 159 00:10:10.400 --> 00:10:14.440 The message of McDonald's was "I'm lovin it" 160 00:10:16.269 --> 00:10:19.519 This message is very well aligned with the McDonald value proposition 161 00:10:19.819 --> 00:10:21.890 What it is? It's a kind of a family love 162 00:10:22.640 --> 00:10:24.240 Fast food, family love 163 00:10:24.640 --> 00:10:27.570 Levi's jeans 164 00:10:28.440 --> 00:10:31.269 The message of the Levi's the quality never goes out of style 165 00:10:31.879 --> 00:10:35.159 so we focused on we emphasized on quality 166 00:10:35.639 --> 00:10:39.039 So this message is well aligned with the Levi's jeans 167 00:10:39.559 --> 00:10:42.009 The quality of a value proposition 168 00:10:42.209 --> 00:10:44.709 3M, innovation 169 00:10:44.709 --> 00:10:46.759 eBay, "Buy it. Sell it. Love it." 170 00:10:47.140 --> 00:10:50.040 Disneyland, "The happiest place on earth" 171 00:10:50.190 --> 00:10:52.940 Hallmark card 172 00:10:52.940 --> 00:10:56.040 "When You Care enough to send the very best." 173 00:10:56.290 --> 00:11:02.450 It's a great message and well aligned with the Hallmark value proposition 174 00:11:02.500 --> 00:11:04.100 It's Budweiser 175 00:11:04.100 --> 00:11:07.100 Budweiser's message was "King of beer" 176 00:11:07.350 --> 00:11:09.509 All right, it's a great message 177 00:11:09.859 --> 00:11:11.009 High-quality beer 178 00:11:12.009 --> 00:11:14.399 So these are all 179 00:11:15.599 --> 00:11:17.599 message in order to make a great impression 180 00:11:19.760 --> 00:11:26.910 I want to give you popular and commonly used technique for the promotion 181 00:11:26.910 --> 00:11:28.430 First one is flyers 182 00:11:28.880 --> 00:11:32.130 You can make a simple flyers because it is very cheap 183 00:11:33.130 --> 00:11:35.920 and also you can distribute these flyers on street 184 00:11:39.490 --> 00:11:45.410 This is the kind of example of the flyers in the Zipcars when Zipcars started their businesses 185 00:11:45.660 --> 00:11:48.810 They created some kind of postcard postcard flyers 186 00:11:48.810 --> 00:11:51.560 and distribute this postcard flyers on street 187 00:11:51.560 --> 00:11:53.720 This is a simple 188 00:11:54.670 --> 00:11:59.090 and popular technique for the for the promotion still popular 189 00:12:00.879 --> 00:12:03.029 Next one is a promotion video 190 00:12:03.029 --> 00:12:07.239 You can film your service or your product 191 00:12:08.169 --> 00:12:12.519 Then video marketing can be most powerful way in these days 192 00:12:12.519 --> 00:12:17.150 because It reach out the mass consumers very quickly 193 00:12:17.950 --> 00:12:20.759 reach out the millions of people within short period of time 194 00:12:21.209 --> 00:12:23.309 And also you don't have to pay too much money 195 00:12:24.509 --> 00:12:28.649 and I will show you some interesting promotion video 196 00:12:30.649 --> 00:12:32.449 Let's watch it together 197 00:12:32.449 --> 00:12:34.219 It will take around three minutes 198 00:12:39.269 --> 00:12:40.769 What do you think? 199 00:12:41.119 --> 00:12:46.339 From this video you understand the value proposition of the product 200 00:12:46.739 --> 00:12:50.289 You understand immediately from the this video 201 00:12:50.939 --> 00:12:54.280 So the 200 million people already watch this video 202 00:12:54.280 --> 00:12:57.480 It means, you reached out 203 00:12:57.480 --> 00:13:00.930 200 million people in short period of time 204 00:13:00.930 --> 00:13:04.930 with a very efficient, the marketing expense 205 00:13:06.430 --> 00:13:09.490 So this is a really good way of the promotion 206 00:13:10.859 --> 00:13:14.809 Next popular technique for the promotion is the referral marketing 207 00:13:15.459 --> 00:13:18.320 Referral marketing basically, 208 00:13:19.280 --> 00:13:21.159 means that 209 00:13:21.609 --> 00:13:25.259 the company asked the consumers to invite their friends 210 00:13:25.709 --> 00:13:30.119 So their friends can be recommended by their friend 211 00:13:30.679 --> 00:13:32.829 So why it is important? 212 00:13:32.829 --> 00:13:35.179 Because if people feel more comfortable 213 00:13:35.179 --> 00:13:38.600 when the product or services, recommended by 214 00:13:38.950 --> 00:13:44.049 their friends or family members by someone who they know or they trust 215 00:13:44.669 --> 00:13:48.760 throughout the report of marketing the companies can reduce the 216 00:13:49.039 --> 00:13:54.239 Sales expense and increase the sales cycle 217 00:13:54.919 --> 00:13:58.919 So many companies already involved in the referral marketing 218 00:13:59.319 --> 00:14:01.069 I will give you example, Uber 219 00:14:01.800 --> 00:14:05.359 Uber involved in referral marketing 220 00:14:06.159 --> 00:14:11.580 and also the Airbnb, asked the current consumers to invite the friends 221 00:14:12.080 --> 00:14:14.280 into the Airbnb service 222 00:14:14.330 --> 00:14:17.570 So the referral marketing is a proven promotion technique 223 00:14:19.440 --> 00:14:23.140 Another technique is influencer marketing 224 00:14:24.290 --> 00:14:27.910 and these days we have a lot of influencers from the YouTube 225 00:14:27.910 --> 00:14:31.049 from the Tik-tok from the Instagram and then 226 00:14:31.180 --> 00:14:35.200 Startups that can use influencer as a kind of marketing tool 227 00:14:35.200 --> 00:14:38.250 And why using influencers important? 228 00:14:38.750 --> 00:14:42.019 Because influencers, offer some kind of social proof 229 00:14:42.369 --> 00:14:46.269 It means people trust Influencer's recommendation 230 00:14:46.419 --> 00:14:50.520 So, if the influencer endorsed one of 231 00:14:51.440 --> 00:14:55.690 service or a product, then the people believe it 232 00:14:55.690 --> 00:14:57.190 And second reason is 233 00:14:57.479 --> 00:15:01.779 influencer marketing is relatively cheap compared to the mass marketing 234 00:15:02.679 --> 00:15:05.599 So it is a kind of cost effective technique 235 00:15:06.280 --> 00:15:08.780 So you can use influencer marketing 236 00:15:09.530 --> 00:15:13.840 and getting an influencer to favorably review or promote your product 237 00:15:14.440 --> 00:15:17.140 Then you can get credibility 238 00:15:18.330 --> 00:15:21.580 I will give you example real life real start of example 239 00:15:21.880 --> 00:15:24.340 that use influencer marketing very well 240 00:15:25.210 --> 00:15:26.760 This is Gymshark 241 00:15:26.760 --> 00:15:28.409 Have we heard about the Gymshark? 242 00:15:29.000 --> 00:15:33.750 Gymshark right now is, I think a three billion dollars value company 243 00:15:34.100 --> 00:15:38.690 Gymshark was started 2012 from the UK and this company, 244 00:15:39.440 --> 00:15:45.619 making some clothes for the gym 245 00:15:46.119 --> 00:15:47.619 This is a Gymshark 246 00:15:48.290 --> 00:15:51.290 So the Gymshark is the UK based the fitness apparel fitness apparel 247 00:15:52.340 --> 00:15:57.919 and accessory brand and it was started 2012 248 00:15:58.239 --> 00:16:02.479 by young kids in UK 249 00:16:03.050 --> 00:16:06.150 The special thing of the Gymshark is 250 00:16:06.450 --> 00:16:10.850 that the Gymshark involved in influencer marketing much faster 251 00:16:10.850 --> 00:16:12.850 Than the other startups 252 00:16:14.679 --> 00:16:21.639 Rather than many spending the money on traditional advertising, 253 00:16:22.689 --> 00:16:28.729 Gymshark work with fitness, the influencers or bodybuilders or 254 00:16:29.880 --> 00:16:31.580 fitness models 255 00:16:32.840 --> 00:16:35.340 Then it works it perfectly works 256 00:16:35.840 --> 00:16:40.650 and then Gymshark became so popular and grew rapidly 257 00:16:41.100 --> 00:16:43.100 And then later became the unicorn company 258 00:16:44.150 --> 00:16:48.450 So the Gymshark collaborate with fitness, influencers 259 00:16:49.470 --> 00:16:53.620 Gymshark sent the free product to them 260 00:16:54.170 --> 00:16:58.550 to the influencer like a Steve cook and Nikki 261 00:16:58.550 --> 00:17:02.000 Then build the brand the credibilities 262 00:17:03.700 --> 00:17:05.200 Look at the picture 263 00:17:05.200 --> 00:17:09.050 His name is Chris Bumstead, 264 00:17:09.050 --> 00:17:11.610 he's a professional bodybuilder 265 00:17:12.060 --> 00:17:16.509 He won five times five times in this, global award 266 00:17:18.150 --> 00:17:20.850 his name was a steve cook 267 00:17:20.850 --> 00:17:25.599 He's he's also, very handsome bodybuilder maybe and, Nikki 268 00:17:25.800 --> 00:17:28.050 She's a fitness model 269 00:17:28.050 --> 00:17:32.400 Anyway, so the Gymshark collaborate with those famous influencers 270 00:17:33.959 --> 00:17:37.640 Then their marketing activities was very successful 271 00:17:40.479 --> 00:17:43.429 Another one is the free trials 272 00:17:43.429 --> 00:17:48.040 What I mean by free trial, you just simply the offer the free trials 273 00:17:48.519 --> 00:17:51.289 to the consumers for a limited period 274 00:17:52.839 --> 00:17:57.839 Kind of just one month the free trials and it makes the impression 275 00:17:57.939 --> 00:18:02.020 that your company and your product can be trusted 276 00:18:02.220 --> 00:18:03.170 Just use it 277 00:18:03.170 --> 00:18:05.020 Use it for free for one month 278 00:18:05.020 --> 00:18:07.090 If you are satisfied then you can continue to use 279 00:18:08.419 --> 00:18:12.919 It provide an opportunity to the consumers to compare your product with others 280 00:18:13.419 --> 00:18:14.520 without any money 281 00:18:18.170 --> 00:18:20.120 The example would be the Dropbox 282 00:18:20.370 --> 00:18:25.020 Dropbox engaging into free trial technique for the promotion 283 00:18:25.370 --> 00:18:30.200 Dropbox offered two gigabyte of the cloud the storage for free 284 00:18:30.680 --> 00:18:35.330 To all the users and then if the users invited their friend 285 00:18:35.530 --> 00:18:39.070 and the Dropbox gave additional storage capacity 286 00:18:40.040 --> 00:18:41.790 And then after then what happened? 287 00:18:41.790 --> 00:18:45.540 Users based grew dramatically from 288 00:18:45.540 --> 00:18:50.560 100,000 to 4 million Users in 15 months 289 00:18:51.510 --> 00:18:56.440 It is all because of the success of the promotion, which is a free trial 290 00:18:57.400 --> 00:18:58.840 What about Canva? 291 00:18:59.140 --> 00:19:00.740 If you use a Canva then you register for the Canva, 292 00:19:00.940 --> 00:19:05.769 then you can get the chance to use the Canva for free one month 293 00:19:05.919 --> 00:19:07.119 it's a Canva free trials 294 00:19:09.899 --> 00:19:11.399 Well, what about guerrilla marketing? 295 00:19:11.649 --> 00:19:13.399 Have we heard about guerrilla marketing? 296 00:19:13.399 --> 00:19:16.530 Guerrilla marketing involved in a low-cost campaign 297 00:19:16.830 --> 00:19:19.200 And then it is a very creative campaign 298 00:19:19.200 --> 00:19:23.300 and it has certain limit of time, 299 00:19:23.300 --> 00:19:25.399 certain limit of area 300 00:19:25.799 --> 00:19:27.039 So for example 301 00:19:30.239 --> 00:19:33.459 this is the Brewdog's guerrilla marketing, 302 00:19:34.110 --> 00:19:37.859 I remember that in 2011 or 2012 303 00:19:38.359 --> 00:19:40.959 Brewdog open up the new bar 304 00:19:40.959 --> 00:19:45.080 and then, Brewdog founders drove the tank, 305 00:19:47.199 --> 00:19:53.579 military weapon, through the tank on the street of the UK 306 00:19:54.199 --> 00:19:59.349 And of course, this event attract tons of people's attention 307 00:19:59.349 --> 00:20:01.239 and also media covered this story 308 00:20:01.880 --> 00:20:04.230 This is one of the example of the guerrilla marketing 309 00:20:04.230 --> 00:20:05.460 It's very creative 310 00:20:06.280 --> 00:20:10.570 Very cool and catch the attention 311 00:20:11.560 --> 00:20:13.560 What about Uber? 312 00:20:14.519 --> 00:20:16.169 In 2013 313 00:20:17.219 --> 00:20:20.739 Uber created a very specialized event, which is Uber kitten 314 00:20:20.900 --> 00:20:26.180 Uber delivered adaptable kittens on demand to the people 315 00:20:26.660 --> 00:20:28.660 And they received the donation 316 00:20:29.140 --> 00:20:32.819 And also, you can google it and there is a several pictures 317 00:20:33.219 --> 00:20:36.339 It's a kind of crazy and cool and very cute 318 00:20:36.900 --> 00:20:39.540 Because people love kitten 319 00:20:40.500 --> 00:20:42.509 So what about the result? 320 00:20:44.099 --> 00:20:51.519 National press, media covered this story and also massive download, later on 321 00:20:51.519 --> 00:20:55.399 So it is a very successful promotion, 322 00:20:55.399 --> 00:20:59.199 which is guerrilla marketing 323 00:20:59.199 --> 00:21:00.900 Remember guerrilla marketing 324 00:21:01.459 --> 00:21:03.259 When you engage in guerrilla marketing, 325 00:21:03.259 --> 00:21:06.180 you should come up with a very creative idea 326 00:21:08.579 --> 00:21:10.579 Let's move on getting publicity 327 00:21:10.929 --> 00:21:13.679 Getting publicity mean, you use publicity 328 00:21:14.029 --> 00:21:18.450 Because the publicity is kind of literally free and viral 329 00:21:20.099 --> 00:21:22.749 And publicity give you some kind of credibility 330 00:21:22.749 --> 00:21:24.399 What I mean by publicity 331 00:21:24.399 --> 00:21:27.060 If the media cover your story then 332 00:21:27.699 --> 00:21:29.549 you get the publicity 333 00:21:29.549 --> 00:21:32.639 So please try to contact with media 334 00:21:35.380 --> 00:21:37.780 So next p is price 335 00:21:39.219 --> 00:21:40.569 Price is very important 336 00:21:40.569 --> 00:21:41.380 Some people said that 337 00:21:41.889 --> 00:21:45.439 the ultimate purpose of the marketing is to 338 00:21:45.439 --> 00:21:50.900 decide your great, your optimum prices 339 00:21:51.750 --> 00:21:55.269 so the price poor pricing kills startups 340 00:21:55.540 --> 00:21:59.419 Do you remember the the price of the wabi parker? 341 00:21:59.869 --> 00:22:06.500 What happened if they keep just $50, eyeglasses then probably 342 00:22:06.979 --> 00:22:10.200 They cannot reach out the profitability 343 00:22:10.589 --> 00:22:13.589 They gave up additional $50 as a profit 344 00:22:13.589 --> 00:22:16.530 So the poor pricing can kill the startup 345 00:22:19.380 --> 00:22:24.730 So, as a startup founder, you'd better find out optimum price 346 00:22:25.080 --> 00:22:27.269 Optimum price is not maximum price 347 00:22:27.740 --> 00:22:30.090 Optimum price report to the highest price 348 00:22:30.290 --> 00:22:35.039 that you produce your desire level of the sales in your target market 349 00:22:35.210 --> 00:22:38.910 It's not maximum, it is optimum 350 00:22:39.160 --> 00:22:41.930 Do you remember the wabi parker? 351 00:22:43.459 --> 00:22:46.959 Tried to find out optimum price ranges 352 00:22:46.959 --> 00:22:50.419 then they sent out the survey then they found that 353 00:22:51.540 --> 00:22:55.490 the willingness to pay is increased up to $100 354 00:22:55.940 --> 00:22:59.490 and then after then their willingness to pay is a decrease 355 00:23:00.040 --> 00:23:03.820 so their optimum prices was how much? $100 356 00:23:04.320 --> 00:23:08.320 If they try to find out maximum dollars, money, prices, 357 00:23:08.570 --> 00:23:11.849 then they can put any number of prices 358 00:23:12.249 --> 00:23:14.949 What about $200? What about $300? 359 00:23:16.049 --> 00:23:19.169 But we are going to find out the optimum prices 360 00:23:20.930 --> 00:23:23.780 In order to find out your optimum prices 361 00:23:24.130 --> 00:23:26.830 you understand your consumer's willingness to pay of course 362 00:23:27.130 --> 00:23:29.309 and also you think about three C's 363 00:23:29.309 --> 00:23:30.459 Three C's 364 00:23:30.459 --> 00:23:32.809 The first C is cost 365 00:23:32.809 --> 00:23:34.190 Your cost of production 366 00:23:34.190 --> 00:23:37.340 Second C is your consumer's preference 367 00:23:37.640 --> 00:23:40.390 Third C is your competitor's prices 368 00:23:41.420 --> 00:23:43.979 Don't set your prices based on your cost 369 00:23:45.679 --> 00:23:47.929 and your price is beyond your cost 370 00:23:50.180 --> 00:23:54.530 What other factors, your demand of the consumers 371 00:23:54.980 --> 00:23:58.000 and your values perceived by consumers 372 00:23:59.500 --> 00:24:02.209 and the price is set by competing company 373 00:24:02.609 --> 00:24:05.909 Your competitors set up certain kind of price ranges 374 00:24:06.209 --> 00:24:08.900 and you report to those price ranges 375 00:24:09.899 --> 00:24:11.949 And the last one your strategies, 376 00:24:11.949 --> 00:24:14.660 your strategy can impact on your pricing 377 00:24:14.910 --> 00:24:19.360 those factors can impact on your decision of your prices 378 00:24:19.860 --> 00:24:21.959 to find out your optimum price 379 00:24:23.219 --> 00:24:26.219 I want to give you several pricing strategy 380 00:24:26.869 --> 00:24:30.219 First one is penetrate the pricing strategy 381 00:24:30.709 --> 00:24:33.640 Penetrating pricing strategy reports to 382 00:24:34.500 --> 00:24:37.140 the pricing strategy that set up 383 00:24:37.859 --> 00:24:39.909 Kind of low prices, why? 384 00:24:40.059 --> 00:24:44.660 Because you want to get the market share, you want to penetrate this market 385 00:24:44.960 --> 00:24:48.460 So your purpose is to gain market share very quickly 386 00:24:48.560 --> 00:24:51.229 So that's why you set up low price ranges 387 00:24:51.579 --> 00:24:53.179 Think about amazon.com 388 00:24:53.179 --> 00:24:55.750 When amazon.com started their businesses 389 00:24:55.850 --> 00:25:00.050 they provided at least 20 or 30 percent discount 390 00:25:00.350 --> 00:25:04.340 This is kind of Penetration pricing strategy 391 00:25:04.494 --> 00:25:05.800 What about scheming? 392 00:25:06.509 --> 00:25:11.210 Scheming strategy reports to setting the prices at the highest level in the market 393 00:25:12.910 --> 00:25:17.060 and then later you raise down your prices gradually 394 00:25:17.310 --> 00:25:19.369 This is a scheming prices strategy 395 00:25:20.260 --> 00:25:23.210 Next pricing strategy was 396 00:25:23.510 --> 00:25:25.660 Odd-even pricing strategy 397 00:25:26.259 --> 00:25:31.269 This strategy has been commonly used okay in the real field 398 00:25:31.419 --> 00:25:33.369 What it is? 399 00:25:33.730 --> 00:25:39.010 You can set your price that end in the number five seven nine 400 00:25:39.780 --> 00:25:41.780 This is the odd pricing 401 00:25:42.020 --> 00:25:44.020 Or you can set the prices 402 00:25:44.180 --> 00:25:46.630 That ends in just zero 403 00:25:46.730 --> 00:25:48.739 This is the kind of even number pricing 404 00:25:49.219 --> 00:25:52.099 What is the difference between odd number and even number? 405 00:25:53.060 --> 00:25:56.260 If your price, if your product is kind of a cheap product, 406 00:25:56.660 --> 00:25:58.899 then you'd better put odd number 407 00:25:58.899 --> 00:26:01.349 Such as $9.99 408 00:26:01.449 --> 00:26:04.639 Then the consumers perceive your product is kind of cheap 409 00:26:04.989 --> 00:26:09.289 but if your product is kind of a luxurious product 410 00:26:09.289 --> 00:26:11.439 like Hermes woman's bag, 411 00:26:11.439 --> 00:26:16.464 then you'd better put the even number, 412 00:26:16.464 --> 00:26:23.314 such as my product cost $10,000, $20,000 413 00:26:23.464 --> 00:26:28.114 If you put just $9,000, $9,999, 414 00:26:28.214 --> 00:26:31.864 it is not working very well in the department store 415 00:26:31.864 --> 00:26:32.864 You know what I mean? 416 00:26:32.864 --> 00:26:35.164 So based on your quality of the product, 417 00:26:35.414 --> 00:26:37.764 you can choose the odd number or even number pricing 418 00:26:37.864 --> 00:26:39.014 Please remember that 419 00:26:39.314 --> 00:26:42.614 And next one is the partitioned pricing 420 00:26:42.814 --> 00:26:44.514 Partitioned pricing means 421 00:26:44.764 --> 00:26:49.414 you set the price for the baseline service first, 422 00:26:49.614 --> 00:26:55.014 then you charge the additional price for the additional services 423 00:26:56.314 --> 00:26:59.864 It has been used a lot in these days, like this 424 00:27:01.014 --> 00:27:04.664 This is the basic price line, basic price $9 425 00:27:04.914 --> 00:27:08.614 But if consumers need additional services, 426 00:27:08.614 --> 00:27:12.114 or additional based on their choice, 427 00:27:12.114 --> 00:27:15.214 you can charge additional $1, $2, $3 428 00:27:15.614 --> 00:27:19.414 This is the partitioned pricing, 429 00:27:19.614 --> 00:27:21.564 which is very useful 430 00:27:23.464 --> 00:27:25.864 Next one is captive pricing 431 00:27:26.264 --> 00:27:30.814 Captive pricing is very well aligned with your 432 00:27:30.814 --> 00:27:32.864 baked-in-hook business model 433 00:27:32.864 --> 00:27:35.664 If your business model is based on 434 00:27:35.664 --> 00:27:36.864 the baked-in-hook business model, 435 00:27:36.864 --> 00:27:39.214 then you can use the captive pricing 436 00:27:39.364 --> 00:27:40.714 Captive pricing means 437 00:27:40.914 --> 00:27:46.114 you set up the prices for one item relatively cheap, 438 00:27:46.364 --> 00:27:53.264 then charging much higher price for the expendable it uses 439 00:27:53.364 --> 00:27:54.064 You know what I mean? 440 00:27:54.114 --> 00:27:56.264 For example, espresso machine 441 00:27:56.564 --> 00:28:00.514 You set up the relatively cheap prices for the machine itself, 442 00:28:00.764 --> 00:28:04.864 but you charge a little bit expensive price for the coffee pot 443 00:28:04.864 --> 00:28:06.964 Then you can make money from the coffee pot 444 00:28:07.114 --> 00:28:09.414 This is the captive pricing 445 00:28:11.614 --> 00:28:13.764 What about price aligning? 446 00:28:13.964 --> 00:28:16.614 Price aligning strategy is a kind of practice of setting 447 00:28:16.614 --> 00:28:20.864 three or four or five different prices 448 00:28:21.214 --> 00:28:22.864 In order to use price aligning, 449 00:28:23.064 --> 00:28:26.514 then you should have three different 450 00:28:26.514 --> 00:28:30.964 or four different types of services or product 451 00:28:31.214 --> 00:28:34.814 For example, this is Apple iPad, 452 00:28:35.414 --> 00:28:39.064 and Apple prepared for several different types of iPad 453 00:28:39.314 --> 00:28:43.464 The first one is the high-quality iPad, middle-quality iPad, 454 00:28:43.464 --> 00:28:45.114 and the low-quality iPad 455 00:28:45.364 --> 00:28:47.814 Based on the quality, based on the function, 456 00:28:48.914 --> 00:28:51.564 Apple charges different prices 457 00:28:51.914 --> 00:28:55.464 The high-function, high-quality iPad is very expensive, 458 00:28:55.714 --> 00:28:59.864 and low-function and low-quality iPad is relatively cheap 459 00:28:59.864 --> 00:29:01.864 This is price aligning 460 00:29:07.864 --> 00:29:10.864 This could be additional pricing strategy 461 00:29:10.864 --> 00:29:12.964 For example, 462 00:29:12.964 --> 00:29:15.864 you can provide your product and service almost for free, 463 00:29:15.864 --> 00:29:18.864 but you can make money from advertisement, 464 00:29:18.864 --> 00:29:21.864 like Google or Facebook 465 00:29:23.214 --> 00:29:25.714 Another one is your product can be free, 466 00:29:27.214 --> 00:29:30.614 but the service is different 467 00:29:31.814 --> 00:29:35.564 You can charge very expensive prices for the service 468 00:29:35.764 --> 00:29:37.864 Free product, service is different 469 00:29:38.664 --> 00:29:43.214 Mostly free, but you pay for premium service 470 00:29:43.864 --> 00:29:48.564 This pricing strategy is well aligned with 471 00:29:48.564 --> 00:29:50.314 the premium business model 472 00:29:52.864 --> 00:29:57.164 Next P and last P is Place 473 00:29:58.464 --> 00:29:59.864 What is Place? 474 00:30:00.614 --> 00:30:06.464 The purpose of Place is to put the right product at the right prices, 475 00:30:06.514 --> 00:30:09.114 at the right places, at the right time 476 00:30:09.314 --> 00:30:11.864 This is the purpose of Place 477 00:30:13.864 --> 00:30:15.864 I want to give you an example about the placement 478 00:30:15.864 --> 00:30:17.864 What is the placement? 479 00:30:17.864 --> 00:30:21.864 For example, Coca-Cola's vending machine 480 00:30:22.864 --> 00:30:27.514 We can access Coca-Cola very easily 481 00:30:28.064 --> 00:30:29.564 throughout the vending machine, 482 00:30:31.014 --> 00:30:34.864 in front of the dormitory, or in front of the library, 483 00:30:34.864 --> 00:30:37.364 in front of the grocery store, 484 00:30:37.964 --> 00:30:39.914 just on the street, 485 00:30:39.914 --> 00:30:42.864 or inside the subway 486 00:30:42.864 --> 00:30:44.864 There are a lot of vending machines 487 00:30:44.864 --> 00:30:47.864 Then you can easily access Coca-Cola 488 00:30:47.864 --> 00:30:50.364 The vending machine is one of the great 489 00:30:50.364 --> 00:30:52.864 placement strategies of Coca-Cola 490 00:30:52.864 --> 00:30:54.864 Coca-Cola was very successful 491 00:30:54.864 --> 00:30:56.864 because of the vending machine idea, 492 00:30:56.864 --> 00:30:59.864 which is a placement strategy 493 00:30:59.864 --> 00:31:01.864 What about a car dealer shop? 494 00:31:01.864 --> 00:31:05.864 A car dealer shop is located in a great location, 495 00:31:05.864 --> 00:31:11.864 and they attract the consumers and connect the car company and car buyers 496 00:31:11.864 --> 00:31:15.864 This is a kind of placement strategy 497 00:31:17.864 --> 00:31:19.314 But think about it 498 00:31:19.514 --> 00:31:22.864 If your business is a mobile application, 499 00:31:22.864 --> 00:31:27.864 then how can the consumers reach out your product? 500 00:31:28.814 --> 00:31:33.064 The consumers cannot download your mobile application 501 00:31:33.264 --> 00:31:34.864 from the vending machines 502 00:31:35.814 --> 00:31:40.264 And the consumers cannot meet your product at 503 00:31:40.264 --> 00:31:41.364 the car dealer shop 504 00:31:41.764 --> 00:31:44.864 So, where can consumers meet your product, 505 00:31:44.864 --> 00:31:47.414 which is a mobile application? 506 00:31:47.514 --> 00:31:51.014 Yes, of course, the consumers should go to the app store 507 00:31:51.714 --> 00:31:54.864 The app store is provided by a mobile company, 508 00:31:55.864 --> 00:32:00.014 such as Apple, such as Samsung Electronics, something like that 509 00:32:01.564 --> 00:32:03.314 so the placement 510 00:32:03.864 --> 00:32:06.064 We need to think about distribution channels 511 00:32:06.164 --> 00:32:09.614 and consumer access points and channel partners 512 00:32:09.814 --> 00:32:13.514 For example, distribution channels mean how and where 513 00:32:13.514 --> 00:32:16.464 the product reaches the consumers 514 00:32:16.714 --> 00:32:21.364 App stores or parking lots or vending machines, 515 00:32:21.614 --> 00:32:25.214 those are all distribution channels or grocery stores 516 00:32:25.864 --> 00:32:27.864 If your product is just a snack, 517 00:32:27.864 --> 00:32:31.864 then the consumers can purchase your product at the grocery store 518 00:32:32.064 --> 00:32:33.614 This is a distribution channel 519 00:32:34.064 --> 00:32:36.864 And the second element is consumer access point 520 00:32:38.864 --> 00:32:41.264 How can consumers purchase your product? 521 00:32:41.564 --> 00:32:48.864 Yes, consumers physically visit the grocery store 522 00:32:50.764 --> 00:32:53.214 They should visit the grocery store physically 523 00:32:53.214 --> 00:32:56.264 and purchase your snack physically 524 00:32:56.464 --> 00:33:00.064 Or, consumers can simply open up the mobile application 525 00:33:00.214 --> 00:33:03.564 and place the order to purchase the snack 526 00:33:03.914 --> 00:33:05.164 It's about the digital 527 00:33:05.564 --> 00:33:09.714 So, the consumers can meet your product through the digital 528 00:33:09.914 --> 00:33:12.614 or through the physical stores 529 00:33:13.214 --> 00:33:14.864 This is a consumer access point 530 00:33:15.214 --> 00:33:18.114 And the last one is channel partners 531 00:33:18.714 --> 00:33:21.214 You can make a partnership with your channels 532 00:33:21.814 --> 00:33:23.514 For example, retailers 533 00:33:23.514 --> 00:33:25.264 You can partner with the retailers 534 00:33:25.464 --> 00:33:28.514 You can partner with the convenience stores 535 00:33:29.564 --> 00:33:33.414 So, then the consumers can meet your product very easily 536 00:33:34.864 --> 00:33:36.114 I will give you an example 537 00:33:36.314 --> 00:33:38.414 Have you heard about Kakao Hair Shop? 538 00:33:38.514 --> 00:33:43.314 Kakao Hair Shop is not just a physical hair salon 539 00:33:43.864 --> 00:33:49.164 Kakao Hair Shop is just a mobile application to connect hair salons 540 00:33:49.414 --> 00:33:52.364 and the users or consumers 541 00:33:52.864 --> 00:33:56.464 And you can just download this application 542 00:33:56.864 --> 00:33:59.064 through your smartphone 543 00:33:59.364 --> 00:34:03.514 If you have a Kakao mobile application, which is a messenger app, 544 00:34:03.614 --> 00:34:09.614 then you can easily get an audition at the Kakao Hair Shop 545 00:34:09.764 --> 00:34:11.014 It's pretty easy 546 00:34:11.664 --> 00:34:16.264 And if you go to the Kakao partners real hair salon, 547 00:34:16.314 --> 00:34:19.164 then you can find out this X banner like this 548 00:34:19.164 --> 00:34:22.264 Then, throughout this X banner, you realize that, 549 00:34:22.314 --> 00:34:25.814 oh my god, this store, this hair salon 550 00:34:25.914 --> 00:34:28.964 partnered with Kakao Hair Shop 551 00:34:29.064 --> 00:34:30.614 So, I can make a reservation 552 00:34:30.856 --> 00:34:33.264 I can make a reservation easily from the Kakao Hair Shop 553 00:34:33.414 --> 00:34:37.964 I don't have to call this beauty salon directly later 554 00:34:38.414 --> 00:34:40.264 This is a partner network 555 00:34:43.414 --> 00:34:47.664 And I went to MyRealTrip.com 556 00:34:47.864 --> 00:34:51.264 Have you heard about MyRealTrip.com? 557 00:34:51.264 --> 00:34:56.214 MyRealTrip.com is a very well-known travel company in Korea 558 00:34:56.864 --> 00:34:59.164 And then if you visit this website, 559 00:34:59.164 --> 00:35:05.714 you can find out this very unique icon at the bottom 560 00:35:05.864 --> 00:35:12.864 This is a consumer service, which is a chatbot 561 00:35:12.864 --> 00:35:18.864 But MyRealTrip.com didn't make this consumer service chatbot 562 00:35:18.864 --> 00:35:23.864 There is another very famous chatbot company 563 00:35:23.864 --> 00:35:27.864 So, the chatbot company provides these types of functions 564 00:35:27.864 --> 00:35:31.864 attached with MyRealTrip.com website 565 00:35:32.364 --> 00:35:38.364 So, we cannot find out this chatbot company the other way 566 00:35:38.514 --> 00:35:40.314 But we can easily find out this chatbot company 567 00:35:40.314 --> 00:35:43.164 throughout the other company's website 568 00:35:43.164 --> 00:35:44.064 You know what I mean? 569 00:35:44.064 --> 00:35:45.914 This is a kind of placement 570 00:35:45.914 --> 00:35:47.714 So, please think about 571 00:35:47.714 --> 00:35:52.264 where you can locate your product or services 572 00:35:52.864 --> 00:35:55.864 so that consumers can easily find out your product and services 573 00:35:56.864 --> 00:36:00.864 So, these are all marketing 4Ps 574 00:36:00.864 --> 00:36:06.314 From product, promotion, price, and placement 575 00:36:06.864 --> 00:36:08.454 Thank you for listening