Welcome back again
The topic in this sub-session is marketing 4Ps
So have we heard about the marketing 4Ps?
Basically marketing 4Ps
It's kind of a stand for
very important factors, which they are
the product, place
price, promotion
these are all marketing 4Ps
If we have a great idea,
if we have a very strong concept about those 4Ps
then you are able to
have a great marketing decision
This is a all about the marketing, effort
let's begin with the product first
Product
So what is the product, good product?
The key to success, product is also service product and service
Good product or good service is a key to success
If you don't have any good product or good services, you cannot be successful
It's a pretty obvious
And then the good product or service to help a business connect with your consumers
If we have a great product or services then consumers come to visit you
and you can easily connect with consumers
But if you don't have product good product or services
then nobody visit you and you cannot meet your consumers
so the most important thing is
You need to provide
Very clear value proposition
Do you remember to what value proposition is?
Value proposition located in the consumer side
so the consumers perceive the very something valuable from your service and product
So the value proposition is a very unique selling point that will be used
to differentiate your product and service from your competitors
So basically your value proposition and your unique selling point,
make your product remarkable
I will give you an example
Let's look at the Dropbox
Do you know what Dropbox is?
Yes, it is an online storage service
When Drew Huston explained this concept to the investors
then investors ask him
how many online storage services out there
and then Drew Huston said that
Yes I know then the investors ask again
Then why we need additional online storage services?
then Drew Huston replied to the question
Why you don't use online storage service?
None of you guys probably don't use online storage service
Why because it is very difficult to use them
so my service is to
simplify the whole the process of using
the online storage services you just click your file and drag file
and just drop your file into our service
Dropbox, so that's why I made the name of the Dropbox
then the investors understood right away
Then they decided to invest the money into the Dropbox service
So, what makes Dropbox remarkable?
If the consumer use the Dropbox service then they gain,
the kind of a new value that never existed before, what are they?
It's easy way to syncing file and collaborating with others and backing the file
Easy way is the very important
Yes, it's a quality already proven and usability is a user friendly
So that's why these factors made Dropbox remarkable
Again, marketing 4Ps
One of the most important P is product
You should prepare great product with very clear value proposition
I will give you another example
Let's look at the Instagram
Many of you guys already use Instagram
Then why you use Instagram?
Because you perceive with some unique value when you use Instagram
So what makes Instagram remarkable?
So there is a visual storytelling
When you use Instagram, visual storytelling possible
and also you can experience increase in community involvement
Then you can attract many fan
If we have many fan, then you can make money from your fan
This is a monetization opportunity
These types of values never exist before so there is a no reason not use Instagram
And what about the quality? Quality is such a great?
Instagram allow you make a beautiful picture by providing some kind of beautiful filters
then usability very simple to use
You just open up the mobile application
and just download the file and use some kind of filter
Then, you can make you make a beautiful
Kind of professional pictures
Let's move on
Alibaba's Taobao.com, the eBay entered the Chinese market
then they fight with Taobao.com then later
Taobao.com eventually won the game
then eBay decided to quit the businesses in China
How it is possible?
Because the Chinese people perceive the Taobao.com much valuable than ebay.com
Although ebay.com was a professional and has a global network and has a long history
but the Taobao.com won the game
What makes the Taobao.com remarkable?
Because using Taobao.com is free of charge
At the time, to use ebay.com, you should pay for this fee
There is an insertion fee finalized fees, there are several fees
The eBay never gave up their fee system
So, to use eBay you should pay
If you want to you use a Taobao.com, you don't have to pay
So why not?
There's no reason not to use Taobao.com
That's why Taobao.com was very successful
Please remember the first P was
Product
Good product is a prerequisite for your marketing
Next P is promotion, remember the promotion
The purpose of the promotion is to
disseminate your information
regarding your service and product to the consumers
Why it is important?
Because without these activities
consumers don't know who you are, and don't know about your product
about your services
So this activity is very important
Like this, promotion is very similar to the advertisement
You advertise your service and your product to the consumers
So you pay for the promotion fee to
advertise your product, at the subway station or inside the subway train
And also you put your advertisement on the billboard, on the highway
this is kind of the promotion
Again the purpose of the promotion is to make is to disseminate again
Disseminate your information to the consumers to make impression
To make a great impression
to the consumers and then later you expect to have sales lead
Who is the sales lead?
Sales lead is a people who receive the promotion impression
and who gives some thought to purchase your product, but they didn't purchase yet
They are not actual consumers,
but they they are consumers who has interest in your product
Then later you try to make this, sales lead
the prospect
Who is the prospect?
The prospect is a sales lead who actually purchase your product
It's a kind of actual the paying consumers
So again, the what is the purpose of the promotion the first one?
You want to make impression
in order to generate the sales lead
and eventually turns this sales lead the paying consumer
How to make a great impression to the consumers?
There are two steps
It's all about the message
Al about the message you remember that
So your question is how to make a great message
Message make a good impression how to make a great message
To make a great message, please remember two step
The first one
You need to make a very simple message
and your message should be aligned with your value proposition
I will give you example
What about Apple's messaging? It's "Think different"
This is simple message and
very well aligned with the value proposition of the Apple
If the consumer purchase Apple, then they perceive themselves as a different
What about McDonald's?
The message of McDonald's was "I'm lovin it"
This message is very well aligned with the McDonald value proposition
What it is? It's a kind of a family love
Fast food, family love
Levi's jeans
The message of the Levi's the quality never goes out of style
so we focused on we emphasized on quality
So this message is well aligned with the Levi's jeans
The quality of a value proposition
3M, innovation
eBay, "Buy it. Sell it. Love it."
Disneyland, "The happiest place on earth"
Hallmark card
"When You Care enough to send the very best."
It's a great message and well aligned with the Hallmark value proposition
It's Budweiser
Budweiser's message was "King of beer"
All right, it's a great message
High-quality beer
So these are all
message in order to make a great impression
I want to give you popular and commonly used technique for the promotion
First one is flyers
You can make a simple flyers because it is very cheap
and also you can distribute these flyers on street
This is the kind of example of the flyers in the Zipcars when Zipcars started their businesses
They created some kind of postcard postcard flyers
and distribute this postcard flyers on street
This is a simple
and popular technique for the for the promotion still popular
Next one is a promotion video
You can film your service or your product
Then video marketing can be most powerful way in these days
because It reach out the mass consumers very quickly
reach out the millions of people within short period of time
And also you don't have to pay too much money
and I will show you some interesting promotion video
Let's watch it together
It will take around three minutes
What do you think?
From this video you understand the value proposition of the product
You understand immediately from the this video
So the 200 million people already watch this video
It means, you reached out
200 million people in short period of time
with a very efficient, the marketing expense
So this is a really good way of the promotion
Next popular technique for the promotion is the referral marketing
Referral marketing basically,
means that
the company asked the consumers to invite their friends
So their friends can be recommended by their friend
So why it is important?
Because if people feel more comfortable
when the product or services, recommended by
their friends or family members by someone who they know or they trust
throughout the report of marketing the companies can reduce the
Sales expense and increase the sales cycle
So many companies already involved in the referral marketing
I will give you example, Uber
Uber involved in referral marketing
and also the Airbnb, asked the current consumers to invite the friends
into the Airbnb service
So the referral marketing is a proven promotion technique
Another technique is influencer marketing
and these days we have a lot of influencers from the YouTube
from the Tik-tok from the Instagram and then
Startups that can use influencer as a kind of marketing tool
And why using influencers important?
Because influencers, offer some kind of social proof
It means people trust Influencer's recommendation
So, if the influencer endorsed one of
service or a product, then the people believe it
And second reason is
influencer marketing is relatively cheap compared to the mass marketing
So it is a kind of cost effective technique
So you can use influencer marketing
and getting an influencer to favorably review or promote your product
Then you can get credibility
I will give you example real life real start of example
that use influencer marketing very well
This is Gymshark
Have we heard about the Gymshark?
Gymshark right now is, I think a three billion dollars value company
Gymshark was started 2012 from the UK and this company,
making some clothes for the gym
This is a Gymshark
So the Gymshark is the UK based the fitness apparel fitness apparel
and accessory brand and it was started 2012
by young kids in UK
The special thing of the Gymshark is
that the Gymshark involved in influencer marketing much faster
Than the other startups
Rather than many spending the money on traditional advertising,
Gymshark work with fitness, the influencers or bodybuilders or
fitness models
Then it works it perfectly works
and then Gymshark became so popular and grew rapidly
And then later became the unicorn company
So the Gymshark collaborate with fitness, influencers
Gymshark sent the free product to them
to the influencer like a Steve cook and Nikki
Then build the brand the credibilities
Look at the picture
His name is Chris Bumstead,
he's a professional bodybuilder
He won five times five times in this, global award
his name was a steve cook
He's he's also, very handsome bodybuilder maybe and, Nikki
She's a fitness model
Anyway, so the Gymshark collaborate with those famous influencers
Then their marketing activities was very successful
Another one is the free trials
What I mean by free trial, you just simply the offer the free trials
to the consumers for a limited period
Kind of just one month the free trials and it makes the impression
that your company and your product can be trusted
Just use it
Use it for free for one month
If you are satisfied then you can continue to use
It provide an opportunity to the consumers to compare your product with others
without any money
The example would be the Dropbox
Dropbox engaging into free trial technique for the promotion
Dropbox offered two gigabyte of the cloud the storage for free
To all the users and then if the users invited their friend
and the Dropbox gave additional storage capacity
And then after then what happened?
Users based grew dramatically from
100,000 to 4 million Users in 15 months
It is all because of the success of the promotion, which is a free trial
What about Canva?
If you use a Canva then you register for the Canva,
then you can get the chance to use the Canva for free one month
it's a Canva free trials
Well, what about guerrilla marketing?
Have we heard about guerrilla marketing?
Guerrilla marketing involved in a low-cost campaign
And then it is a very creative campaign
and it has certain limit of time,
certain limit of area
So for example
this is the Brewdog's guerrilla marketing,
I remember that in 2011 or 2012
Brewdog open up the new bar
and then, Brewdog founders drove the tank,
military weapon, through the tank on the street of the UK
And of course, this event attract tons of people's attention
and also media covered this story
This is one of the example of the guerrilla marketing
It's very creative
Very cool and catch the attention
What about Uber?
In 2013
Uber created a very specialized event, which is Uber kitten
Uber delivered adaptable kittens on demand to the people
And they received the donation
And also, you can google it and there is a several pictures
It's a kind of crazy and cool and very cute
Because people love kitten
So what about the result?
National press, media covered this story and also massive download, later on
So it is a very successful promotion,
which is guerrilla marketing
Remember guerrilla marketing
When you engage in guerrilla marketing,
you should come up with a very creative idea
Let's move on getting publicity
Getting publicity mean, you use publicity
Because the publicity is kind of literally free and viral
And publicity give you some kind of credibility
What I mean by publicity
If the media cover your story then
you get the publicity
So please try to contact with media
So next p is price
Price is very important
Some people said that
the ultimate purpose of the marketing is to
decide your great, your optimum prices
so the price poor pricing kills startups
Do you remember the the price of the wabi parker?
What happened if they keep just $50, eyeglasses then probably
They cannot reach out the profitability
They gave up additional $50 as a profit
So the poor pricing can kill the startup
So, as a startup founder, you'd better find out optimum price
Optimum price is not maximum price
Optimum price report to the highest price
that you produce your desire level of the sales in your target market
It's not maximum, it is optimum
Do you remember the wabi parker?
Tried to find out optimum price ranges
then they sent out the survey then they found that
the willingness to pay is increased up to $100
and then after then their willingness to pay is a decrease
so their optimum prices was how much? $100
If they try to find out maximum dollars, money, prices,
then they can put any number of prices
What about $200? What about $300?
But we are going to find out the optimum prices
In order to find out your optimum prices
you understand your consumer's willingness to pay of course
and also you think about three C's
Three C's
The first C is cost
Your cost of production
Second C is your consumer's preference
Third C is your competitor's prices
Don't set your prices based on your cost
and your price is beyond your cost
What other factors, your demand of the consumers
and your values perceived by consumers
and the price is set by competing company
Your competitors set up certain kind of price ranges
and you report to those price ranges
And the last one your strategies,
your strategy can impact on your pricing
those factors can impact on your decision of your prices
to find out your optimum price
I want to give you several pricing strategy
First one is penetrate the pricing strategy
Penetrating pricing strategy reports to
the pricing strategy that set up
Kind of low prices, why?
Because you want to get the market share, you want to penetrate this market
So your purpose is to gain market share very quickly
So that's why you set up low price ranges
Think about amazon.com
When amazon.com started their businesses
they provided at least 20 or 30 percent discount
This is kind of Penetration pricing strategy
What about scheming?
Scheming strategy reports to setting the prices at the highest level in the market
and then later you raise down your prices gradually
This is a scheming prices strategy
Next pricing strategy was
Odd-even pricing strategy
This strategy has been commonly used okay in the real field
What it is?
You can set your price that end in the number five seven nine
This is the odd pricing
Or you can set the prices
That ends in just zero
This is the kind of even number pricing
What is the difference between odd number and even number?
If your price, if your product is kind of a cheap product,
then you'd better put odd number
Such as $9.99
Then the consumers perceive your product is kind of cheap
but if your product is kind of a luxurious product
like Hermes woman's bag,
then you'd better put the even number,
such as my product cost $10,000, $20,000
If you put just $9,000, $9,999,
it is not working very well in the department store
You know what I mean?
So based on your quality of the product,
you can choose the odd number or even number pricing
Please remember that
And next one is the partitioned pricing
Partitioned pricing means
you set the price for the baseline service first,
then you charge the additional price for the additional services
It has been used a lot in these days, like this
This is the basic price line, basic price $9
But if consumers need additional services,
or additional based on their choice,
you can charge additional $1, $2, $3
This is the partitioned pricing,
which is very useful
Next one is captive pricing
Captive pricing is very well aligned with your
baked-in-hook business model
If your business model is based on
the baked-in-hook business model,
then you can use the captive pricing
Captive pricing means
you set up the prices for one item relatively cheap,
then charging much higher price for the expendable it uses
You know what I mean?
For example, espresso machine
You set up the relatively cheap prices for the machine itself,
but you charge a little bit expensive price for the coffee pot
Then you can make money from the coffee pot
This is the captive pricing
What about price aligning?
Price aligning strategy is a kind of practice of setting
three or four or five different prices
In order to use price aligning,
then you should have three different
or four different types of services or product
For example, this is Apple iPad,
and Apple prepared for several different types of iPad
The first one is the high-quality iPad, middle-quality iPad,
and the low-quality iPad
Based on the quality, based on the function,
Apple charges different prices
The high-function, high-quality iPad is very expensive,
and low-function and low-quality iPad is relatively cheap
This is price aligning
This could be additional pricing strategy
For example,
you can provide your product and service almost for free,
but you can make money from advertisement,
like Google or Facebook
Another one is your product can be free,
but the service is different
You can charge very expensive prices for the service
Free product, service is different
Mostly free, but you pay for premium service
This pricing strategy is well aligned with
the premium business model
Next P and last P is Place
What is Place?
The purpose of Place is to put the right product at the right prices,
at the right places, at the right time
This is the purpose of Place
I want to give you an example about the placement
What is the placement?
For example, Coca-Cola's vending machine
We can access Coca-Cola very easily
throughout the vending machine,
in front of the dormitory, or in front of the library,
in front of the grocery store,
just on the street,
or inside the subway
There are a lot of vending machines
Then you can easily access Coca-Cola
The vending machine is one of the great
placement strategies of Coca-Cola
Coca-Cola was very successful
because of the vending machine idea,
which is a placement strategy
What about a car dealer shop?
A car dealer shop is located in a great location,
and they attract the consumers and connect the car company and car buyers
This is a kind of placement strategy
But think about it
If your business is a mobile application,
then how can the consumers reach out your product?
The consumers cannot download your mobile application
from the vending machines
And the consumers cannot meet your product at
the car dealer shop
So, where can consumers meet your product,
which is a mobile application?
Yes, of course, the consumers should go to the app store
The app store is provided by a mobile company,
such as Apple, such as Samsung Electronics, something like that
so the placement
We need to think about distribution channels
and consumer access points and channel partners
For example, distribution channels mean how and where
the product reaches the consumers
App stores or parking lots or vending machines,
those are all distribution channels or grocery stores
If your product is just a snack,
then the consumers can purchase your product at the grocery store
This is a distribution channel
And the second element is consumer access point
How can consumers purchase your product?
Yes, consumers physically visit the grocery store
They should visit the grocery store physically
and purchase your snack physically
Or, consumers can simply open up the mobile application
and place the order to purchase the snack
It's about the digital
So, the consumers can meet your product through the digital
or through the physical stores
This is a consumer access point
And the last one is channel partners
You can make a partnership with your channels
For example, retailers
You can partner with the retailers
You can partner with the convenience stores
So, then the consumers can meet your product very easily
I will give you an example
Have you heard about Kakao Hair Shop?
Kakao Hair Shop is not just a physical hair salon
Kakao Hair Shop is just a mobile application to connect hair salons
and the users or consumers
And you can just download this application
through your smartphone
If you have a Kakao mobile application, which is a messenger app,
then you can easily get an audition at the Kakao Hair Shop
It's pretty easy
And if you go to the Kakao partners real hair salon,
then you can find out this X banner like this
Then, throughout this X banner, you realize that,
oh my god, this store, this hair salon
partnered with Kakao Hair Shop
So, I can make a reservation
I can make a reservation easily from the Kakao Hair Shop
I don't have to call this beauty salon directly later
This is a partner network
And I went to MyRealTrip.com
Have you heard about MyRealTrip.com?
MyRealTrip.com is a very well-known travel company in Korea
And then if you visit this website,
you can find out this very unique icon at the bottom
This is a consumer service, which is a chatbot
But MyRealTrip.com didn't make this consumer service chatbot
There is another very famous chatbot company
So, the chatbot company provides these types of functions
attached with MyRealTrip.com website
So, we cannot find out this chatbot company the other way
But we can easily find out this chatbot company
throughout the other company's website
You know what I mean?
This is a kind of placement
So, please think about
where you can locate your product or services
so that consumers can easily find out your product and services
So, these are all marketing 4Ps
From product, promotion, price, and placement
Thank you for listening